Beijing (AP) — China’s central bank has cut a key interest rate as U.S. tariffs threaten the economy.
People’s Bank of China Governor Pan Gongsheng announced Wednesday that the lending rate to commercial banks would be reduced by 0.25 percentage points to 1.5%. The central bank also reduced the reserve ratio — the amount of money banks must hold in their reserves.
The move comes as high tariffs imposed by U.S. President Donald Trump start to take a toll on China’s export-dependent economy.