China PBOC Adopts Overnight Rate Policy Anchor
China's central bank announced it will conduct daily overnight reverse repo operations starting next Monday. The move establishes the overnight rate at 1.25 percent as its primary policy anchor, aligning its framework with major global central banks.
China will conduct daily overnight reverse repo operations starting Monday, setting the operating rate at 1.25% as a new policy anchor. The shift aligns monetary management with major global peers. The transition lays the groundwork for diversified loan rate pricing benchmarks and broader interest rate transmission.
