People's Bank of China Signals Shift to Overnight Rate as Main Policy Benchmark

The People's Bank of China (PBOC) has indicated its intention to replace the current seven-day reverse repurchase rate with the overnight reverse repurchase rate as its primary policy benchmark. PBOC Governor Pan Gongsheng stated at the Financial Street Forum in Beijing on Monday that the central bank would study switching the main tenor of its open market operations to the overnight one at an appropriate time. This move aims to align China's monetary policy framework more closely with global central bank practices.