PBOC Launches Overnight Reverse Repo on June 29 as It Reshapes Rate-Steering Framework
Updated
Updated · Bloomberg · Jun 25
PBOC Launches Overnight Reverse Repo on June 29 as It Reshapes Rate-Steering Framework
1 articles · Updated · Bloomberg · Jun 25
Summary
June 29 and June 30 mark the PBOC’s first overnight reverse repurchase operations, adding a new tenor to its open-market toolkit.
The central bank said the overnight funds will be offered at a fixed rate, a step aimed at improving how it guides short-term borrowing costs.
The new operation is also meant to better match banks’ very short-term liquidity needs, signaling a policy-framework shift in day-to-day cash management.