The PBoC is taking steps to cut mortgage rates by the end of October

The People’s Bank of China (PBOC) said on Sunday it will tell banks to lower mortgage rates on existing home loans before October 31, in the latest attempt to prop up the troubled housing sector as the economy slows, according to Bloomberg.

Commercial banks should cut interest rates on existing mortgage loans to no less than 30 basis points (bps) below the prime lending rate (LPR), according to a statement released by the People’s Bank of China (PBOC). They are expected to reduce existing mortgage rates by about 50 bps on average.