China Loosens Monetary Policy to Revive Faltering Economy

China eased key monetary policy tools on Wednesday in an effort to boost its ailing economy, which is suffering from the effects of low consumer spending and President Donald Trump's trade war.

The country's leaders are battling to reignite growth, which has yet to fully recover from the COVID-19 pandemic, hampered by slow domestic demand and a protracted property sector crisis.

This has been made worse by a harsh trade dispute in which Beijing retaliated with 125 percent duties on US imports and the US president imposed tariffs of up to 145 percent on numerous Chinese goods.

China's central bank chief, Pan Gongsheng, announced at a press conference that Beijing would cut a key interest rate and the amount of reserves banks need to hold to boost lending.

He stated that Beijing's policies aimed "to support technological innovation, boost consumption, and promote inclusive finance, among other areas".

A persistent crisis in the property sector, which was once a key driver of growth, continues to weigh on the economy.

In an effort to boost demand, Pan also announced that the bank would reduce the interest rate for first-time home buyers with loan terms of more than five years to 2.6%, from 2.85%.

The moves represent some of China's most significant economic stimulus measures since September.