# China cuts new loan rate for second month but struggling economy likely needs more

> China cut its one-year loan prime rate for the second month running on September 20, to 4.2%. The move aims to lower borrowing costs as the economy slows amid the trade war.

- Date: 2019-09-20 · published 2019-09-20T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/57291-china-cuts-new-loan-rate-for-second-month-but-struggling-economy-likely-needs
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Lower lending costs support Chinese livestock and industrial investment over time, a modest positive for feed demand, though the effect on grain prices is limited.

## Read by commodity

- CORN: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2019-09-20 | [China cuts rates via a new tool \| articles \| ING THINK](https://feedsoft.ai/events/57293-china-cuts-rates-via-a-new-tool-articles-ing-think.md) | +1.7% | +4.4% |
| CORN | 2024-09-30 | [Wheat Supply Lowered: Impact of China's Economic Stimulus](https://feedsoft.ai/events/28352-wheat-supply-lowered-impact-of-china-s-economic-stimulus.md) | +1.0% | -0.6% |
| CORN | 2026-08-01 | [Economist sees growing risk for tighter feeder cattle margins in 2027](https://feedsoft.ai/events/18480-economist-sees-growing-risk-for-tighter-feeder-cattle-margins-in-2027.md) | -0.6% | +10.8% |
| CORN | 2022-04-25 | [Australian share market suffers $55 billion loss on China lockdown fears - ABC News](https://feedsoft.ai/events/42095-australian-share-market-suffers-55-billion-loss-on-china-lockdown-fears-abc-news.md) | +0.4% | -2.0% |
| CORN | 2019-09-06 | [China cuts reserve ratio as it boosts stimulus amid trade woes \| The National](https://feedsoft.ai/events/57295-china-cuts-reserve-ratio-as-it-boosts-stimulus-amid-trade-woes-the-national.md) | -1.8% | +3.3% |

## Sources

- reuters.com: https://www.reuters.com/article/economy/china-cuts-new-loan-rate-for-second-month-but-struggling-economy-likely-needs-mo-idUSKBN1W50TE/

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