China's central bank to cut key interest rate
China's central bank says it will cut its key short-term interest rate amid trade friction with the US.
The People's Bank of China Governor Pan Gongsheng said the bank will trim the seven-day reverse repo rate from 1.5 percent to 1.4 percent from Thursday.
The bank apparently aims to prop up the country's economy with additional monetary easing and support for financing companies.
A prolonged real estate slump has weakened domestic demand. The cut in the short-term rate will be the first since September last year. Rates on mortgages and corporate loans are also expected to fall with the move.
The bank also says it will lower its reserve requirement ratio for banks on Thursday next week. The cut is expected to funnel around 1 trillion yuan, or about 138 billion dollars, into the financial markets.
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