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China central bank backs mortgage rate hikes in capital

[BEIJING] China's central bank supports a move by some banks to increase lending rates on mortgage loans in the Beijing market, state broadcaster China Central Television (CCTV) on Tuesday quoted the central bank as saying.

Mortgage lending rates that are 5 per cent to 10 per cent higher than the benchmark lending rate have become "a mainstream phenomenon" in Beijing, the business management department of the People's Bank of China (PBOC) said.

The banks' move was "in line with the policy direction", it added.