People's Bank of China has cut its interest rate for the 7-day reverse report to 1.7% from 1.8%
- PBOC will strengthen the counter-cyclical adjustment to "better support the real economy"
The rate cut is, at the margin, a headwind for yuan ... but the strengthening of the counter cyclical adjustment is the opposite!
The rate cut will take effect immediately, today.
USD/CNH had rallied earlier, not doing a whole lot on the new info:
![usdcnh pboc rate cut 22 July 2024 2](https://images.forexlive.com/images/usdcnh%20pboc%20rate%20cut%2022%20July%202024_id_3ac00be1-32d2-4bda-a731-e2a82ed2e094_size900.jpg)