China is lowering its key interest rate from 1.5 to 1.4 percent, announces the country's central bank governor Pan Gongsheng on Wednesday.
Besides the interest rate, they are also lowering the capital requirements for Chinese banks – that is, how large reserves they must have in relation to their lending – by half a percentage point.
The decisions were communicated just hours after the countries' finance ministers announced that they will meet in Switzerland later in the week to talk about trade policy between Washington and Beijing, a meeting that takes place in the wake of Donald Trump's trade tariffs.
