2014-11-25

Reality in China: Banks May Eliminate Rate Cuts

Instead of lowering the cost of lending, banks may eliminate their 10% mortgage discounts in the wake of the PBOC's rate cut. The net result will be little to no change in rates.

iFeng: 降息后房贷利率仍可打9折 业内:折扣可能取消
However, the industry believes that the higher cost of capital in the current environment, whether it can really reduce the cost of credit is still in doubt, Wu Hao Wei Jia Anjie mortgage expert, believes that before the end of the year, the Bank may cancel the first suite of lending rates discount. "Asymmetric cuts in fact did not reduce the bank's cost of funds, coupled with the end has always been funding constraints, the bank is likely to cancel the mortgage interest rate discount, becomes the benchmark interest rate." Wu Hao think.

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