# China cuts several major interest rates to support fragile economy

> China cut several key interest rates, including its short-term policy rate and benchmark lending rates, to support a fragile economy. The yuan dropped to a near two-week low of 7.2750 per dollar after the cuts, then pared some losses. Analysts linked the easing to rising expectations of a Federal Reserve rate cut.

- Date: 2024-07-22 · published 2024-07-22T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/7516-china-cuts-several-major-interest-rates-to-support-fragile-economy
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Looser Chinese policy and a weaker yuan can lift the dollar cost of Chinese import demand for feed ingredients, while a softer yuan makes US exports relatively more expensive. The net effect on feed prices is modest, but the easing supports Chinese livestock and feed demand over time.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-01-24 | [Instant view: China central bank acts to support markets, economy](https://feedsoft.ai/events/32356-instant-view-china-central-bank-acts-to-support-markets-economy.md) | +0.0% | +0.2% |
| USDCNY | 2024-07-22 | [China cuts lending rates to boost economic growth following weaker Q2 GDP data](https://feedsoft.ai/events/7518-china-cuts-lending-rates-to-boost-economic-growth-following-weaker-q2-gdp-data.md) | -0.3% | -1.4% |
| USDCNY | 2024-04-29 | [CNY USD: Yuan Devaluation Debate Surfaces as Way to Support China Economy - Bloomberg](https://feedsoft.ai/events/30953-cny-usd-yuan-devaluation-debate-surfaces-as-way-to-support-china-economy.md) | -0.1% | -0.1% |
| 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% |
| USDCNY | 2020-02-20 | [Breaking: The People's Bank of China cut interest rates: AUD and Yuan sliding — Octa](https://feedsoft.ai/events/54798-breaking-the-people-s-bank-of-china-cut-interest-rates-aud-and-yuan-sliding-octa.md) | +0.3% | +0.7% |

## Sources

- reuters.com: https://www.reuters.com/markets/asia/china-central-bank-cuts-short-term-policy-rate-2024-07-22/

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