China's central bank governor said on Wednesday the bank would cut the amount of cash that banks must hold as reserves by 50 basis points, the first reduction in 2025 as policymakers seek to support the economy amid a protracted trade war with the United States.

China’s central bank has cut a key interest rate as U.S. 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.

China will cut its key policy rate by 10 basis points and lower the reserve requirement ratio by 50 basis points.