Central Bank to Increase Frequency of Overnight Reverse Repo Operations to Improve Policy Rate Transmission to Market Rates
Deep News
Aug 12
The People's Bank of China has released its Monetary Policy Implementation Report for the second quarter of 2026. In the second special column, it outlines that the central bank will continue to steadily and orderly advance the reform and improvement of its monetary policy operational framework.
It will conduct operations with flexibility and precision, maintaining overall liquidity at an appropriate level to better guide the smooth operation of short-term money market rates. Taking into account the needs of primary dealers, the bank will gradually increase the frequency of overnight reverse repo operations to further smooth the transmission of policy rates to market rates.
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