# China cuts a key policy rate for first time in 10 months as economic rebound cools

> The PBOC lowered the rate on 237 billion yuan of one-year medium-term lending facility loans by 10 basis points, from 2.75% to 2.65%. It was the first such cut in 10 months. Equities rose modestly, and the move followed the earlier seven-day repo cut.

- Date: 2023-06-15 · published 2023-06-15T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/35716-china-cuts-a-key-policy-rate-for-first-time-in-10-months-as-economic-rebound
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

The cut signals more monetary support for China's slowing economy, which can support feed demand over time, though its direct effect on commodity prices is limited.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2023-06-13 | [China cuts key policy rate as post-Covid recovery fizzles; yuan hits 6-month low](https://feedsoft.ai/events/35715-china-cuts-key-policy-rate-as-post-covid-recovery-fizzles-yuan-hits-6-month-low.md) | +0.5% | +0.3% |
| USDCNY | 2022-11-15 | [China keeps key lending rate unchanged as policymakers balance yuan, economic risks \| Financial Post](https://feedsoft.ai/events/8204-china-keeps-key-lending-rate-unchanged-as-policymakers-balance-yuan-economic.md) | +1.3% | -1.8% |
| USDCNY | 2023-08-29 | [China’s yuan firms in tight range as investors await key economic data - Markets - Business Recorder](https://feedsoft.ai/events/34801-china-s-yuan-firms-in-tight-range-as-investors-await-key-economic-data-markets.md) | +0.2% | +0.3% |
| USDCNY | 2017-05-24 | [Moody’s Downgrades China Credit Ratings for First Time in 30 Years as Debt Mounts - Newsweek](https://feedsoft.ai/events/10570-moody-s-downgrades-china-credit-ratings-for-first-time-in-30-years-as-debt.md) | -1.1% | -0.9% |
| USDCNY | 2018-09-27 | [World’s two largest economies diverge as China leaves key interest rate unchanged in wake of US Fed cut \| South China Morning Post](https://feedsoft.ai/events/63271-world-s-two-largest-economies-diverge-as-china-leaves-key-interest-rate.md) | -0.1% | +1.0% |

## Sources

- cnbc.com: https://www.cnbc.com/2023/06/15/china-cuts-a-key-policy-rate-for-first-time-in-10-months-as-economic-rebound-cools.html

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