# Central bank cuts interest rates to boost real economy

> China's central bank cut the one-year re-lending rate by 0.25 percentage point to 2.25% and the rediscount rate to 2%, with the aim of easing credit for agriculture and small firms. It also lowered special re-lending rates by 0.5 percentage point to 1.75%.

- Date: 2020-07-02 · published 2020-07-02T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/9739-central-bank-cuts-interest-rates-to-boost-real-economy
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Cheaper credit for agricultural and small businesses supports Chinese livestock and feed-sector activity, a modestly supportive factor for feed demand. The effect on commodity prices is limited.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-08-21 | ['I'm not thrilled': Trump blasts Fed for raising interest rates, not doing enough to help him boost economy \| Financial Post](https://feedsoft.ai/events/63699-i-m-not-thrilled-trump-blasts-fed-for-raising-interest-rates-not-doing-enough.md) | -0.6% | +0.1% |
| USDCNY | 2022-04-27 | [China economy: Central bank tries to slow weakening yuan vs US dollar](https://feedsoft.ai/events/4947-china-economy-central-bank-tries-to-slow-weakening-yuan-vs-us-dollar.md) | +0.8% | +1.5% |
| USDCNY | 2022-08-22 | [China cuts lending benchmarks to revive faltering economy \| Reuters](https://feedsoft.ai/events/40263-china-cuts-lending-benchmarks-to-revive-faltering-economy-reuters.md) | +0.8% | +2.8% |
| USDCNY | 2021-06-18 | [Central bank targets exchange rate stability - Chinadaily.com.cn](https://feedsoft.ai/events/7118-central-bank-targets-exchange-rate-stability-chinadaily-com-cn.md) | +0.3% | +0.5% |
| USDCNY | 2017-04-27 | [China to push yuan internationalization, free trade: central bank official](https://feedsoft.ai/events/71710-china-to-push-yuan-internationalization-free-trade-central-bank-official.md) | +0.1% | -0.1% |

## Sources

- english.www.gov.cn: https://english.www.gov.cn/policies/policywatch/202007/02/content_WS5efd1797c6d05a0f89706839.html

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