At the 2026 Financial Street Forum opening, PBOC's Pan said the interbank
overnight repo rate (DR001) is the most active, benchmark money-market rate and
now effectively reflects short-term funding supply and demand; it has in
practice become the PBOC's policy target. He noted a mismatch because the PBOC's
main open-market operation tenor and principal policy rate remain seven days. To
improve the precision of rate control, the PBOC will study, and may at an
appropriate time implement, switching its main open-market operation instruments
to overnight, with the open-market overnight repo rate accordingly becoming the
primary policy rate.
