China’s central bank adopts overnight reverse repo as main policy rate

China’s central bank shifted its main policy rate anchor from the seven-day to the overnight reverse repo rate on November 2, conducting 541 billion yuan ($81.1 billion) of overnight operations at 1.25 per cent.
Under the revised framework, overnight reverse repos will become the PBOC’s primary open-market instrument, with other related rates also linked to the new benchmark.Read More