China Cuts Key Rate, Reserve Ratio to Aid Economy Hit by Tariffs

China reduced its policy rate and lowered the amount of cash lenders must keep in reserve, as Beijing ramps up efforts to help an economy caught in a second trade war with the US.

The People’s Bank of China cut the seven-day reverse repurchase rate to 1.4% from 1.5%, according to Governor Pan Gongsheng. The central bank will also trim the reserve requirement ratio by half a percentage point, Pan said at a briefing on Wednesday.

Pan’s announcement came hours after China revealed it would hold its first trade talks this weekend with US officials since Donald Trump unleashed a ...