On October 22, 2026, the weighted average interest rate of DR007 fell to 1.3197%, while the more responsive weighted average interest rate of DR001 rose to 1.2619%. Overall, both remained near the lower end of their three-month fluctuation range.
-------- Note: Short-term money market interest rates such as DR001 and DR007 reflect the adequacy of market liquidity. Besides loan rates for the real economy, many transactions in financial markets such as the stock and bond markets are essentially leveraged through loans, and the cost of these loans depends on short-term funding rates.
The gap between DR007 and the central bank's 7-day reverse repo rate (policy rate) is a key focus of market attention. A significantly higher DR007 rate than the policy rate indicates a shortage of funds in the market, suggesting the central bank may intervene to inject liquidity; conversely, a lower DR007 rate indicates very ample market liquidity.
In October 2026, the People's Bank of China announced that it would change the policy rate to overnight reverse repos at an opportune time. This means that DR001 is expected to become the anchor for short-term interest rates in China, and the difference between DR001 and the overnight reverse repo rate will become an indicator of market liquidity.
