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The People's Bank of China unexpectedly cut the rate on 700 billion yuan of one-year medium-term lending facility loans by 10 basis points to 2.85%, the first MLF rate cut since April 2020. Macquarie strategist Gareth Berry said the move would likely add downward pressure on the yuan, possibly pushing the rate toward 6.55 per dollar.
The easing signals Beijing's concern about growth, which could support Chinese feed demand over time, while a weaker yuan raises the dollar cost of imports.
cnbc.comSumathi BalaJan 17, 2022After 31 past bullish policy events, Chinese Yuan (CNY per USD) moved a median -0.2% over 5 sessions (42% higher; middle half -0.4% to +0.3%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
