PBOC'S PAN said the interbank overnight repo rate has become the policy target rate. Market experts said the shift to make overnight repos the main open-market instrument is a monetary-policy framework reform to refine interest-rate control mechanics

2026-10-20

PBOC'S PAN said the interbank overnight repo rate has become the policy target rate. Market experts said the shift to make overnight repos the main open-market instrument is a monetary-policy framework reform to refine interest-rate control mechanics, not a conventional rate cut. Wang Jian, chief financial analyst at Guosen Securities' Economic Research Institute, said overnight operations may become and the policy rate could transition from 7-day to overnight routine, but this should not be conflated with easing. GF Securities chief economist Guo Lei said the follow measures a move toward a price-based framework and warned markets against treating the operational reform as a rate cut to trade on.