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2026-11-02 11:24:24
[PBOC Conducts 541 Billion Yuan Overnight Reverse Repo Operation to Implement "Anchor Change"] The People's Bank of China (PBOC) announced on November 2nd that it conducted 541 billion yuan of overnight reverse repo operations using a fixed-rate, quantity-based bidding method, with an operation rate of 1.25%. This is the first operation conducted by the PBOC since its announcement on October 30th regarding adjustments to relevant mechanisms, signifying a shift in the maturity of the main open market operation instruments to overnight, and a "anchor change" for the central bank's main policy interest rates. The PBOC's October 30th announcement stated that, starting November 2nd, overnight reverse repo operations will be conducted daily using a fixed-rate, quantity-based bidding method. Other tools previously based on the 7-day reverse repo operation rate with adjustments to the spread, including temporary repos and repurchase instruments used by overseas central banks, have all been adjusted to be based on the overnight reverse repo operation rate with adjustments to the spread, with the spread remaining unchanged. Experts believe this signifies a further deepening of price-based regulation, a shift towards shorter-term interest rates in major policy policies, and a move towards a more unified set of policy tools. This aligns with the People's Bank of China's repeated emphasis on "de-emphasizing quantitative targets" and "reinforcing the role of price-based regulatory tools such as interest rates." (Xinhua)
