# China central bank surprises by lending again at lower rates | Reuters

> The People's Bank of China conducted an unscheduled medium-term lending facility operation at steeply lower rates, its second surprise move that week. The operation followed the benchmark rate cuts announced on Monday. The central bank appears to be increasing monetary stimulus to support the economy.

- Date: 2024-07-25 · published 2024-07-25T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/7521-china-central-bank-surprises-by-lending-again-at-lower-rates-reuters
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Additional liquidity support signals Beijing's intent to stabilize growth, which could eventually support Chinese feed and livestock demand. The effect on feed prices is indirect and depends on whether demand recovers.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-01-25 | [Surprise China MLF rate rise weighs on bonds; yuan and money rates fall \| Reuters](https://feedsoft.ai/events/73175-surprise-china-mlf-rate-rise-weighs-on-bonds-yuan-and-money-rates-fall-reuters.md) | +0.3% | +0.3% |
| USDCNY | 2025-05-01 | [EXCLUSIVE: China's central bank asks state lenders to reduce dollar purchases, sources say](https://feedsoft.ai/events/25347-exclusive-china-s-central-bank-asks-state-lenders-to-reduce-dollar-purchases.md) | -0.6% | -1.2% |
| USDCNY | 2024-03-22 | [China yuan slides to four-month low, state banks step in \| Reuters](https://feedsoft.ai/events/31441-china-yuan-slides-to-four-month-low-state-banks-step-in-reuters.md) | +0.4% | +0.5% |
| USDCNY | 2018-10-29 | [China's yuan finishes onshore trading at weakest since 2008 By Reuters](https://feedsoft.ai/events/62763-china-s-yuan-finishes-onshore-trading-at-weakest-since-2008-by-reuters.md) | -0.8% | +0.1% |
| USDCNY | 2024-07-09 | [China’s central bank is stuck in a policy dilemma](https://feedsoft.ai/events/12299-china-s-central-bank-is-stuck-in-a-policy-dilemma.md) | -0.1% | -1.9% |

## Sources

- reuters.com: https://www.reuters.com/world/china/china-central-bank-surprises-by-lending-again-lower-rates-2024-07-25/

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