# Surprise China lending rate cut drags ringgit lower | FMT

> The People's Bank of China unexpectedly cut its one-year MLF rate by 15 basis points to 2.5% on August 15. The ringgit ended lower against the US dollar at 4.6335/4.6385 following the cut.

- Date: 2023-08-15 · published 2023-08-15T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/34851-surprise-china-lending-rate-cut-drags-ringgit-lower-fmt
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Malaysian Ringgit (MYR per USD)](https://feedsoft.ai/c/USDMYR.md)

## Why it matters

Chinese easing signals weaker yuan and pressure on regional currencies, which can lift the cost of dollar-priced imports for Asian feed buyers while supporting Chinese demand expectations.

## Read by commodity

- USDCNY: bullish ▲
- USDMYR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-08-22 | [China cuts lending benchmarks to revive faltering economy \| Reuters](https://feedsoft.ai/events/40263-china-cuts-lending-benchmarks-to-revive-faltering-economy-reuters.md) | +0.8% | +2.8% |
| USDCNY | 2026-03-15 | [China encourages dollar buying to slow surging yuan](https://feedsoft.ai/events/11466-china-encourages-dollar-buying-to-slow-surging-yuan.md) | -0.2% | -1.0% |
| USDCNY | 2022-01-17 | [China cuts rates on policy loans, analysts point to more easing ahead](https://feedsoft.ai/events/43362-china-cuts-rates-on-policy-loans-analysts-point-to-more-easing-ahead.md) | -0.3% | +0.1% |
| USDCNY | 2022-01-17 | [Chinese yuan under pressure from medium-term loans cut: Strategist](https://feedsoft.ai/events/43361-chinese-yuan-under-pressure-from-medium-term-loans-cut-strategist.md) | -0.3% | +0.1% |
| USDCNY | 2024-04-12 | [Decoding China’s FX guessing game - Euromoney](https://feedsoft.ai/events/30958-decoding-china-s-fx-guessing-game-euromoney.md) | +0.0% | -0.2% |

## Sources

- freemalaysiatoday.com: https://www.freemalaysiatoday.com/category/business/2023/08/15/surprise-china-lending-rate-cut-drags-ringgit-lower

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.