Central Bank's Unusual Move to Curb Soaring Housing Prices: Freezing Interest Rates While Increasing Reserve Ratio, Xu Jiaxin Reveals Key Factor: Housing Prices Still Difficult to Fall

Reported 7 months ago

In the recent central bank meeting, interest rates were frozen while the reserve ratio was increased, particularly targeting non-self-occupied residential properties to control the flow of funds into the housing market. Xu Jiaxin stated that although this move aims to curb speculation, housing prices may still not decrease significantly. The market might gradually cool down, affecting second-time homebuyers, leading to more properties being released into the market. However, significant corrections in prices are unlikely this year if the stock market remains stable. Various experts offered insights on the potential impact of the central bank's tightening measures on housing loans and the challenges of reducing housing demand and preventing defaults.

Source: YAHOO

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