The Chinese yuan was little changed today after China’s central bank made a surprise interest rate cut. It was the third such move in the past six months, suggesting that Chinese policy makers are serious about rejuvenating the country’s economic growth.
The People’s Bank of China lowered its main interest rate by 25 basis points to 5.1 percent over the weekend. It was just one of many actions from Chinese authorities to reinvigorate growth, but they have been largely unsuccessful so far. Some analysts believe that the scope of policy easing was not big enough and the central bank should perform more borrowing cost reductions to bolster the economy.
USD/CNY traded little changed at 6.2090 as of 12:55 GMT today. The currency pair rose as high as 6.2097 and fell as low as 6.2073 during the current trading session.
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