The Chinese central bank lowered the five-year reference interest rate for mortgages (Loan Prime Rate/LPR) by 25 basis points from 4.20 to 3.95 percent on Tuesday in an attempt to support the struggling property market. It is the biggest interest rate cut ever in this segment – significantly larger than market observers had expected in a Reuters survey. The LPR is normally granted to the banks’ prime customers and is set on a monthly basis. China last lowered the five-year LPR by 10 basis points in June 2023. It was only introduced in 2019.