- The PBOC published the overnight reverse repo rate at 1.25% in a Friday statement, after keeping the rate secret for four months.
- The overnight rate sits below the current 1.4% seven-day benchmark, which signals a lower policy rate.
- Bloomberg reported in June that the first overnight reverse repo operation was set at 1.25%. The official disclosure is the new development.
- The central bank is taking the final steps toward making the overnight rate its main policy lever.
Quotes
“The rate on the overnight reverse repurchase agreements is 1.25%, compared with 1.4% on the current seven-day benchmark”