PBOC will run overnight reverse repos every working day from 2 November at 1.25%, shifting its policy anchor to the overnight rate.
The People's Bank of China said in Open Market Operations Announcement No. 13 of 2026 on 30 October that, to further improve its short-term interest-rate management, it will adjust open market operations from 2 November 2026: it will conduct overnight reverse repo tenders every working day at a fixed rate with quantity bidding, currently at 1.25%; 7-day reverse repos will switch to fixed-quantity, interest-rate tenders with multiple winning rates, held mainly around tax periods and month-ends; and tools previously priced at a spread to the 7-day reverse repo rate, including temporary repos and reverse repos and the repo facility for overseas central-bank-type institutions, will instead be priced off the overnight rate with unchanged spreads. Reuters called it a step towards making the overnight rate the main policy anchor, noting that 1.25% is the first overnight operation rate the PBOC has disclosed, broadly in line with market expectations and below the 1.4% 7-day rate; Citic Securities chief economist Ming Ming said the reform lays the groundwork for diversifying loan-rate pricing benchmarks.
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