BEIJING, CHINA – MARCH 06

Pan Gongsheng, governor of the People’s Bank of China, attends a news conference on the economy for the third session of the 14th National People’s Congress (NPC) on March 6, 2025, in Beijing, China.
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China’s central bank and financial regulators announced significant plans on Wednesday to cut key interest rates in an effort to bolster growth amid ongoing trade concerns.
China will reduce the seven-day reverse repurchase rates by 10 basis points to 1.4% from 1.5%, as stated by the People’s Bank of China Governor Pan Gongsheng during a press briefing. This move will lower the loan prime rate, the main policy rate, by approximately 10 basis points, the governor noted.

The central bank will also decrease the reserve requirement ratio, which sets the minimum amount of cash banks are required to hold in reserves, by 50 basis points, releasing an additional liquidity of 1000 billion yuan ($138.6 billion) into the market.

Pan was accompanied by officials from the National Financial Regulatory Administration and the China Securities Regulatory Commission.
The press conference occurred shortly after Beijing confirmed that Chinese Vice Premier He Lifeng will meet with U.S. Treasury Secretary Scott Bessent in Switzerland later this week to discuss tariff and trade issues, marking a potential reopening of negotiations between the two countries.

These discussions would be the first confirmed trade talks since U.S. President Donald Trump increased tariffs on Chinese goods to an unprecedented 145%, leading Beijing to impose additional levies of 125% on U.S. imports.
The forthcoming talks could signify a pivotal moment in the ongoing trade tensions that have affected markets and strained trade between the world’s two largest economies.

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