# Breaking: The People's Bank of China cut interest rates: AUD and Yuan sliding — Octa

> The People's Bank of China cut its one-year loan prime rate to 4.05% from 4.15% and its five-year rate to 4.75% from 4.80%, as widely expected. The yuan and Australian dollar slid after the decision, with AUD/USD hitting fresh lows near 0.6652.

- Date: 2020-02-20 · published 2020-02-20T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/54798-breaking-the-people-s-bank-of-china-cut-interest-rates-aud-and-yuan-sliding-octa
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

Lower Chinese borrowing costs aim to support demand from firms hit by the outbreak, which is supportive for Australian commodity exports. A weaker Australian dollar can make Australian grain and feed exports more competitive.

## Read by commodity

- AUDUSD: bearish ▼
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-10-25 | [FX Daily: People’s Bank of China loosens its hold on the renminbi \| articles \| ING THINK](https://feedsoft.ai/events/39356-fx-daily-people-s-bank-of-china-loosens-its-hold-on-the-renminbi-articles-ing.md) | +0.6% | -1.7% |
| USDCNY | 2024-06-28 | [China’s central bank puts the yuan’s exchange-rate swings in crosshairs \| South China Morning Post](https://feedsoft.ai/events/30006-china-s-central-bank-puts-the-yuan-s-exchange-rate-swings-in-crosshairs-south.md) | -0.0% | -0.3% |
| USDCNY | 2023-05-30 | ["Yuan" weakens, reaching the lowest level in 6 months, worried about the Chinese economic slowdown - the Bank of Thailand will not intervene - Money & Banking Magazine](https://feedsoft.ai/events/36185-yuan-weakens-reaching-the-lowest-level-in-6-months-worried-about-the-chinese.md) | +0.6% | +2.2% |
| USDCNY | 2024-07-22 | [China stocks drop after party meeting, yuan falls on rate cuts - The Pound Hub](https://feedsoft.ai/events/7517-china-stocks-drop-after-party-meeting-yuan-falls-on-rate-cuts-the-pound-hub.md) | -0.3% | -1.4% |
| USDCNY | 2024-07-09 | [China’s yuan slides on weaker guidance; Powell testimony in focus - The Pound Hub](https://feedsoft.ai/events/12302-china-s-yuan-slides-on-weaker-guidance-powell-testimony-in-focus-the-pound-hub.md) | -0.1% | -1.9% |

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/798191/

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