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.

China's central bank has cut its policy rate and reduced the amount of cash lenders must hold in reserve as it seeks to boost the country's economy amid a trade war with the US, news agencies reported.

China has cut interest rates and bank reserve requirements as part of a barrage of measures meant to counter the blow to its economy from U.S. President Donald Trump’s trade war

China and the US will hold their first trade talks since President Donald Trump took office and more than a month after the two sides imposed tariffs of more than 100% on each other.

US and Chinese officials are set to start talks this week to try to deescalate a trade war between the world's two biggest economies. Chinese Vice Premier He Lifeng will attend the talks in Switzerland from 9 to 12 May,