China to cut interest rates in response to trade war with US

China will cut interest rates and inject some much-needed liquidity into the domestic economy, as the country steels itself for a bruising trade war with the US. The People's Bank of China said on Wednesday it would make a half-point cut to the banks' reserve requirement ratio, its benchmark interest rate, and release 1tn yuan (£103.6bn) into the banking system. Pan Gongsheng, the governor of the People's Bank of China, said China would also cut a key interest rate by 0.1 percentage point. Pan said the "moderately loose" measures were a response to a global economy "full of uncertainties, with…