PBoC Governor Announces Short-Term Rate Mechanism Adjustment, Narrows 7-Day Reverse Repo Corridor to 50 Basis Points on June 17

According to PBoC Governor Pan Gongsheng, on June 17, the People's Bank of China will refine its short-term interest rate control mechanism. Building on the temporary overnight reverse/repo tool established in July 2024, the central bank will adjust the 7-day reverse repo operating rate corridor to ±25 basis points, narrowing it from the previous 70 basis points to 50 basis points. The PBoC also plans to further expand its open market operation toolkit by introducing additional overnight reverse repo instruments to better match short-term liquidity needs in the banking system.
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