The first real indicator of the impact of the trade war is coming out of China.

The country cut their key lending rates by 10 basis points on Tuesday in an effort to boost the economy.

The People’s Bank of China (PBOC) trimmed the 1-year loan prime rate, which influences corporate and most household loans in China, to 3.0% from 3.1%.

Asia Business Correspondent Peter Lewis talks to Heather du Plessis-Allan about what it means.

LISTEN ABOVE.