# China: Interest rate reform won’t stop yuan volatility | ING THINK

> The People's Bank of China has required banks to use the one-year Loan Prime Rate as the basis for lending rates, currently 4.15%, versus the 4.35% benchmark. ING argues the change is not a rate cut and will not end yuan volatility.

- Date: 2020-01-10 · published 2020-01-10T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/55314-china-interest-rate-reform-won-t-stop-yuan-volatility-ing-think
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Interest rate reform shapes Chinese monetary policy and credit conditions, with limited direct effect on feed commodity prices.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2020-10-23 | [Prepare for more volatility in the Chinese yuan, regulator says](https://feedsoft.ai/events/50853-prepare-for-more-volatility-in-the-chinese-yuan-regulator-says.md) | +0.5% | -1.8% |
| USDCNY | 2017-01-03 | [China's yuan may see more volatility vs dollar after basket change \| Reuters](https://feedsoft.ai/events/10252-china-s-yuan-may-see-more-volatility-vs-dollar-after-basket-change-reuters.md) | -0.1% | -1.0% |
| USDCNY | 2022-09-29 | [Exclusive: China's state banks told to stock up for yuan intervention](https://feedsoft.ai/events/7209-exclusive-china-s-state-banks-told-to-stock-up-for-yuan-intervention.md) | -1.2% | +0.3% |
| USDCNY | 2022-09-06 | [Why China's central bank is shoring up the yuan](https://feedsoft.ai/events/12268-why-china-s-central-bank-is-shoring-up-the-yuan.md) | +0.4% | +3.1% |
| USDCNY | 2020-10-28 | [Yuan eases after China tweaks fixing formula to rein in strength \| Financial Post](https://feedsoft.ai/events/50848-yuan-eases-after-china-tweaks-fixing-formula-to-rein-in-strength-financial-post.md) | -0.4% | -1.9% |

## Sources

- think.ing.com: https://think.ing.com/articles/chinas-interest-rate-reform-doesnt-stop-yuan-to-be-volatile/

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