# China cuts key policy rate as post-Covid recovery fizzles; yuan hits 6-month low

> The PBOC cut its seven-day reverse repo rate by 10 basis points from 2.0% to 1.9%, its first such move since August. The yuan weakened to 7.1618 per dollar after the move. Large banks had cut deposit rates the previous week.

- Date: 2023-06-13 · published 2023-06-13T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/35715-china-cuts-key-policy-rate-as-post-covid-recovery-fizzles-yuan-hits-6-month-low
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Easier policy is aimed at reviving a faltering recovery that would support Chinese livestock and feed demand, but the weaker yuan raises the dollar cost of imports.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2020-02-20 | [Yuan falls to over 2-month low as China cuts lending benchmark \| Financial Post](https://feedsoft.ai/events/54795-yuan-falls-to-over-2-month-low-as-china-cuts-lending-benchmark-financial-post.md) | +0.3% | +0.7% |
| USDCNY | 2024-06-27 | [China's Yuan Hits Seven-Month Low As Dollar Outflows Persist - Finimize](https://feedsoft.ai/events/30009-china-s-yuan-hits-seven-month-low-as-dollar-outflows-persist-finimize.md) | +0.0% | -0.5% |
| USDCNY | 2022-04-21 | [China's yuan slides to 6-month low as tightening prospects help dollar \| Financial Post](https://feedsoft.ai/events/7337-china-s-yuan-slides-to-6-month-low-as-tightening-prospects-help-dollar.md) | +2.2% | +5.2% |
| USDCNY | 2024-12-03 | [China’s yuan hits lowest level in months as Trump tariff threats roil currencies \| South China Morning Post](https://feedsoft.ai/events/27171-china-s-yuan-hits-lowest-level-in-months-as-trump-tariff-threats-roil.md) | -0.2% | +0.4% |
| USDCNY | 2021-10-28 | [China's yuan briefly crosses key 6.4/dlr level to hit 1-week low \| Financial Post](https://feedsoft.ai/events/44774-china-s-yuan-briefly-crosses-key-6-4-dlr-level-to-hit-1-week-low-financial-post.md) | +0.2% | +0.0% |

## Sources

- cnbc.com: https://www.cnbc.com/2023/06/13/chinas-central-bank-cuts-its-seven-day-repurchase-rate.html

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