China Slashes Key Mortgage Rate to Spur Housing Demand Amid Economic Worries

• China cut a key mortgage rate, the 5-year loan prime rate, by 25 basis points to 3.95%, the biggest reduction since the rate's introduction in 2019 • The move aims to support the struggling property sector by making mortgages cheaper and stimulating housing demand • It comes ahead of China's National People's Congress in March where economic stimulus measures are expected • While a positive step, the cut may have limited impact as mortgage rates are already low and housing sales remain weak • It raises expectations of further aggressive easing measures this year to combat economic weakness, possibly including more cuts to policy rates