China's central bank announced on Friday that it would cut the loan interest rates of the housing provident fund for first-home buyers by 0.15 percentage points.
Starting Oct. 1, the interest rates for loans that mature within or at five years will be at 2.6 percent, while the over-five-year rate will be slashed to 3.1 percent, the People's Bank of China (PBOC) said on its official website.
The loan rates for second-home buyers will remain unchanged, the PBOC said.
The housing provident fund is a long-term housing savings plan made up of compulsory monthly deposits by both employers and employees. It can only be used by employees for house-related expenses.
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