China’s central bank has announced a cut on interest rates for loans which extend five years or longer to 3.95 percent, with a view to boost the nation’s property market.

However, the central bank has maintained the interest rate on household and corporate loans at 3.45 per cent.

Despite the central bank’s measures, China’s property market will change little and there is still much work to be done to improve the market, experts say.

While the world’s second-largest economy, China, has seen inflation fall to its lowest level in 15 years, its property market debt has been rising since 2020, with some companies declaring bankruptcy.

The Producer Price Index (PPI) has fallen for the past 16 consecutive months and food prices fell 5.9 percent last month.