# China cuts lending rates to boost economic growth following weaker Q2 GDP data

> China unexpectedly cut its seven-day reverse repo rate and benchmark loan prime rates to support growth. The one-year LPR fell to 3.35% and the five-year LPR to 3.85%. The move followed weaker-than-expected second-quarter GDP, which grew 0.7% quarter on quarter.

- Date: 2024-07-22 · published 2024-07-22T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/7518-china-cuts-lending-rates-to-boost-economic-growth-following-weaker-q2-gdp-data
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Weak Chinese growth and easing signal softer demand for imported feed grains and meal, which is bearish for those markets. A weaker yuan also raises the local-currency cost of imports, which can slow buying.

## Read by commodity

- SOY: bearish ▼
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2023-01-17 | [China's 2022 economic growth one of the worst on record, post-pandemic policy faces test \| Reuters](https://feedsoft.ai/events/37986-china-s-2022-economic-growth-one-of-the-worst-on-record-post-pandemic-policy.md) | -3.1% | +0.3% |
| SOY | 2026-08-31 | [Fed Chief Warsh Puts Prices Over Jobs, Lifting Rate-Hike Odds to 57% - Seoul Economic Daily](https://feedsoft.ai/events/17812-fed-chief-warsh-puts-prices-over-jobs-lifting-rate-hike-odds-to-57-seoul.md) | +1.4% | +0.9% |
| SOY | 2018-10-09 | [IMF cuts world economic growth forecasts on tariff war, emerging market strains](https://feedsoft.ai/events/7668-imf-cuts-world-economic-growth-forecasts-on-tariff-war-emerging-market-strains.md) | +2.5% | +0.4% |
| SOY | 2022-09-26 | [China Lets Its Currency Weaken Past a Key Barrier and Tries to Manage the Fall](https://feedsoft.ai/events/7211-china-lets-its-currency-weaken-past-a-key-barrier-and-tries-to-manage-the-fall.md) | -4.3% | -2.1% |
| SOY | 2022-08-15 | [Soy dives on China's economic uncertainty \| Financial Post](https://feedsoft.ai/events/6526-soy-dives-on-china-s-economic-uncertainty-financial-post.md) | -10.8% | -7.2% |
| USDCNY | 2024-07-22 | [China cuts several major interest rates to support fragile economy](https://feedsoft.ai/events/7516-china-cuts-several-major-interest-rates-to-support-fragile-economy.md) | -0.3% | -1.4% |
| USDCNY | 2020-02-20 | [Yuan falls to over 2-month low as China cuts lending benchmark \| Financial Post](https://feedsoft.ai/events/54795-yuan-falls-to-over-2-month-low-as-china-cuts-lending-benchmark-financial-post.md) | +0.3% | +0.7% |
| USDCNY | 2023-06-20 | [Dollar buoyant; yuan wobbles after China cuts lending benchmarks](https://feedsoft.ai/events/11233-dollar-buoyant-yuan-wobbles-after-china-cuts-lending-benchmarks.md) | +1.6% | +0.8% |

## Sources

- bworldonline.com: https://bworldonline.com/world/2024/07/22/609494/china-surprises-with-cuts-to-key-rates-to-support-weak-economy/
- economyglobal.com: https://economyglobal.com/news/china-cuts-lending-rates-to-boost-economic-growth/

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