China's central bank cuts key interest rate as US tariffs threaten economy

Beijing, May 7 (AP) China's central bank has cut a key interest rate as US 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 per cent.

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 US President Donald Trump start to take a toll on China's export-dependent economy. (AP) GRS GRS

Source: PTI