China to cut interest rates in response to trade war with US

China’s recent decision to cut interest rates and inject liquidity through a half-point reduction in the banks' reserve requirement ratio reflects its strategic response to a looming trade war with the US. With exports facing high tariffs, the People's Bank of China aims to strengthen economic stability. Governor Pan Gongsheng emphasized measures to boost consumer spending and mentioned a reduction in borrowing costs for home purchases, which highlights the government’s focus on stimulating the sluggish property market and broader economic growth.

China's central bank will cut the reserve requirement ratio and benchmark interest rates, injecting liquidity amid a escalating trade war with the US.

Amid intensified trade tensions with the US, China's economy faces significant pressure, compelling the central bank to respond with interest rate cuts to stimulate growth.

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