China Considers Overnight Rate Policy Shift
China is studying a shift to the overnight reverse repo rate as its main policy benchmark to improve monetary transmission. The move aligns with global peers and follows a third-quarter economic growth rebound.
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China's central bank is considering shifting its primary policy benchmark to the overnight reverse repurchase rate to refine short-term interest rate control. The potential pivot would replace the seven-day reverse repo rate used since 2024. The adjustment aligns monetary policy frameworks with global peers like the United States Federal Reserve, according to officials.
