China says to cut amount banks hold in reserve to boost economy

China's central bank on Tuesday unveiled a raft of measures to boost the country's struggling economy, cutting the amount of cash banks must hold in reserve and lowering a key interest rate.

Central bank chief Pan Gongsheng said the move will inject around a trillion yuan in long-term liquidity into the financial market. It will also guide commercial banks to lower the interest rates of existing mortgage loans to the vicinity of the interest rates of newly issued loans.