China's central bank tells commercial lenders to start cutting rates on existing mortgages

The People's Bank of China on Sunday told commercial banks to start lowering interest rates on all existing housing loans, in a sweeping move to help lighten the mortgage burden on households hit by a slowing economy.

All commercial banks must, in batches, reduce interest rates on existing mortgages by Oct. 31 to no less than 30 basis points below the PBOC's Loan Prime Rate, the central bank's benchmark rate for mortgages, according to a statement released by the PBOC.