The trade war between US and China started last year and has been going on for around 18 months now. China has tried to keep a straight face and pretend like the tariffs weren’t really affecting the economy, but they had to accept it at some point, since we have all been seeing the figures which show an increasing weakness in the Chinese economy.

Chinese officials have been trying to help the economy through monetary and fiscal policies, but not much effect so far. The People’s Bank of China (PBOC) just commented that they will increase lending. Below are their comments:

• PBOC is to continue with prudent monetary policy
• To step up counter-cyclical adjustment
• Downward pressure on the economy keeps increasing
• To boost banks’ ability to supply credit
• Will continue to push real lending rates lower