Heavyweight! The Peoples Bank of China lowered the

On September 30, the financial sector reported that the central bank had decided to lower the loan interest rate of the first set of personal housing provident fund this evening. From October 1, 2022, the loan interest rate of the first set of personal housing provident fund will be lowered by 0.15 percentage points, and the interest rate of less than five years (including five years) and more than five years will be adjusted to 2.6% and 3.1% respectively. The second set of individual housing provident fund loan interest rate policy remains unchanged, that is, the interest rate of less than 5 years (including 5 years) and more than 5 years is not less than 3.025% and 3.575% respectively.

This policy is the third big move after the recent free reduction of the lower limit of the central bank's mortgage interest rate and the tax exemption policy of the Ministry of Finance.

[P; The interest rate of provident fund loan has been lowered mainly for the demand of housing purchase, that is, the loose policy guidance has been implemented for the first set of personal provident fund loan. It also reflects the guidance of further reducing the purchase cost of those just in need.

In terms of policy significance, this policy fully demonstrates that the provident fund has also implemented a more relaxed policy orientation. 1) If commercial banks continue to cut interest rates on loans, it is objectively necessary to further reduce the interest rate of provident fund loans. Otherwise, the interest margin between provident fund loans and commercial loans is relatively small, which will objectively reduce the attractiveness of provident fund loans, so interest rates must be cut. 2) The interest rate of provident fund loan is further lowered, which makes the advantages of subsequent provident fund loan more obvious, and plays a positive role in further reducing the loan interest rate for new house buyers. 3) This policy of housing provident fund can also be superimposed with other policies, which objectively has positive significance for the release of some improved housing demand. 4) This provident fund policy, together with the policy of the Central Bank yesterday and the policy of the Ministry of Finance today, formed three major moves to stabilize the property market at the end of September, which will significantly boost the real estate market in the fourth quarter.