At the Lujiazui Forum on June 17, PBOC governor Pan Gongsheng said the central bank will narrow the temporary overnight repo rate corridor from 70bps to a symmetric 50bps and will add overnight reverse-repo instruments as needed. Pan said the PBOC will move the timing of temporary repo operations earlier and disclosed trigger conditions: DR001 persistently below or above the corresponding temporary repo operation rate would activate the tool to better anchor market expectations. The measures are

At the Lujiazui Forum on June 17, PBOC governor Pan Gongsheng said the central bank will narrow the temporary overnight repo rate corridor from 70bps to a symmetric 50bps and will add overnight reverse-repo instruments as needed. Pan said the PBOC will move the timing of temporary repo operations earlier and disclosed trigger conditions: DR001 persistently below or above the corresponding temporary repo operation rate would activate the tool to better anchor market expectations. The measures are presented as accelerating the shift to a price-based monetary framework to strengthen transmission from policy rates to market rates. DR001 has traded about ±20bps around policy rates this year; the PBOC said specific overnight reverse-repo operational details will be set by market demand and implemented progressively.