# China holds lending rates steady as it contends with a weakening yuan

> The People's Bank of China held its 1-year loan prime rate at 3.1% and 5-year LPR at 3.6%. The decision came as Beijing prioritized currency stability over rate cuts ahead of Trump's inauguration.

- Date: 2025-01-20 · published 2025-01-20T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/9596-china-holds-lending-rates-steady-as-it-contends-with-a-weakening-yuan
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Lean Hogs](https://feedsoft.ai/c/HOGS.md)

## Why it matters

Holding rates to support the yuan limits Chinese stimulus for hog and livestock sectors, which weighs on feed demand growth; the trade policy outlook stays a key price risk for US feed grains.

## Read by commodity

- HOGS: neutral
- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-10-20 | [China’s yuan exchange rate ‘appropriate’ after recent weakening, central bank chief says \| South China Morning Post](https://feedsoft.ai/events/56815-china-s-yuan-exchange-rate-appropriate-after-recent-weakening-central-bank.md) | -0.2% | -0.8% |
| USDCNY | 2024-05-01 | [China Ramps Up Yuan Support as Fixing Tops Estimates by Record](https://feedsoft.ai/events/30955-china-ramps-up-yuan-support-as-fixing-tops-estimates-by-record.md) | -0.3% | +0.1% |
| USDCNY | 2017-09-24 | [China wants to reduce control of changes in yuan's exchange rate - Chinadaily.com.cn](https://feedsoft.ai/events/69191-china-wants-to-reduce-control-of-changes-in-yuan-s-exchange-rate-chinadaily-com.md) | +1.0% | +0.7% |
| USDCNY | 2017-07-03 | [China's new yuan factor comes into play when currency weakens \| Reuters](https://feedsoft.ai/events/70193-china-s-new-yuan-factor-comes-into-play-when-currency-weakens-reuters.md) | +0.3% | -0.8% |
| USDCNY | 2022-01-22 | [Yuan exchange rate seen staying stable - Chinadaily.com.cn](https://feedsoft.ai/events/43359-yuan-exchange-rate-seen-staying-stable-chinadaily-com-cn.md) | +0.3% | -0.2% |
| HOGS | 2019-11-18 | [China urges regions to speed up pig breeding ahead of Lunar New Year](https://feedsoft.ai/events/56062-china-urges-regions-to-speed-up-pig-breeding-ahead-of-lunar-new-year.md) | -1.8% | +4.5% |
| HOGS | 2022-12-28 | [NDRC in coordination with Chinese farmers to stabilise supply - European Pork \| European Pork, the Smart Choice](https://feedsoft.ai/events/38236-ndrc-in-coordination-with-chinese-farmers-to-stabilise-supply-european-pork.md) | -5.4% | -12.7% |
| HOGS | 2018-10-11 | [China mulls cutting protein in animal feed as soybean supply tightens
						 \| The Poultry Site](https://feedsoft.ai/events/8562-china-mulls-cutting-protein-in-animal-feed-as-soybean-supply-tightens-the.md) | -11.6% | -13.6% |

## Sources

- cnbc.com: https://www.cnbc.com/2025/01/20/china-keeps-benchmark-lending-rates-unchanged-as-it-contends-with-a-weakening-yuan.html

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