The People’s Bank of China is expected to cut rates amidst the escalating Trump trade war. Earlier:

China to step up stimulus, PBOC eyes rate and RRR cuts in Q2

China may cut interest rates and the reserve requirement ratio (RRR) if the trade war with the United States begins to significantly weigh on economic growth, according to Financial News, a publication backed by the People’s Bank of China (PBoC). The report cited former PBoC adviser Yu Yongding, who warned that escalating trade tensions could warrant stronger policy support.

Separately, Shanghai Securities News reported that China is preparing to roll out additional monetary easing measures, including stepped-up counter-cyclical policy adjustments. The government is expected to implement a range of tools to stabilise growth and manage risks as external headwinds mount.

The coordinated messaging appears to underscore Beijing’s willingness to respond proactively should trade disruptions further strain the domestic economy.