Latest News Stream - Reverse Repo Rate

The People’s Bank of China will shift its short-term monetary policy framework toward the overnight rate from Monday, introducing daily overnight reverse repo operations at a fixed rate of 1.25%. The move brings the overnight rate closer to becoming its primary policy anchor, replacing the long-standing seven-day benchmark. The operations will adopt fixed-rate, quantity-based tenders to improve short-term interest rate management. The newly disclosed 1.25% rate is below the existing 1.4% seven-day reverse repo rate and broadly in line with market expectations and actual borrowing costs. Under the revised framework, other liquidity tools, including temporary repo and reverse repo operations, will also be priced off the overnight rate, with existing spreads maintained. Seven-day operations will continue through fixed-quantity tenders with multiple winning bid rates, primarily to address liquidity needs around tax payment periods and month-ends.

The People’s Bank of China (PBoC) said it will conduct overnight reverse repo operations from August 27 to Sept. 1 to meet short-term liquidity needs. The operations will be carried out at a fixed rate via quantity-based bidding, with a daily cap of CNY 600 billion. In addition, the central bank announced a CNY 500 billion one-year medium-term lending facility (MLF) on Tuesday, August 25, conducted through variable-rate tenders with a fixed quantity using a multiple-price auction.

The People’s Bank of China (PBoC) said Thursday, August 13, it conducted zero seven-day reverse repos for a third straight day, citing demand from primary dealers. Separately, the central bank announced it will carry out up to CNY 600 billion of overnight reverse repos per day on August 14 and August 17–19. The PBoC uses these short-term liquidity tools to “fine-tune cash conditions” in the banking system, balancing market demand with stability in funding.

The People’s Bank of China (PBoC) conducted zero seven-day reverse repos in open market operations on Tuesday, according to an online statement, marking the first time since June that it injected no liquidity through the short-term tool. The move was made in response to demand from primary dealers and came as the central bank continued to use reverse repos flexibly to fine-tune liquidity conditions in the banking system. The absence of an injection suggests the central bank saw limited need to provide additional short-term funds, while allowing existing liquidity conditions to guide operations.

The People's Bank of China (PBoC) injected CNY 806.5 billion into the banking system through reverse repo operations on Wednesday, July 29, 2026, to maintain ample liquidity at month-end. The central bank supplied CNY 206.5 billion via seven-day reverse repos at an unchanged interest rate of 1.40%, while adding another CNY 600 billion through overnight reverse repos at a borrowing cost of 1.25%, unchanged from the prior operation in late June. The move followed the PBoC's announcement last week that it would conduct overnight reverse repo operations from July 29 to 31 and again on August 3, injecting a total of CNY 2.1 trillion through the short-term liquidity tool. The operations reflect the central bank's continued efforts to stabilize money market conditions and ensure sufficient cash in the banking system during a period of typically elevated funding demand at the end of the month.

The People's Bank of China (PBoC) injected CNY 69.5 billion through seven-day reverse repos on Tuesday, while keeping the interest rate unchanged at 1.4%, according to an official statement. The central bank also conducted overnight reverse repo operations for a second straight day, offering CNY 600 billion to financial institutions, though it did not disclose the borrowing cost. The PBoC introduced the overnight liquidity tool on Monday, with the interest rate set at 1.25%, according to Reuters.

The People's Bank of China (PBoC) injected CNY 157.5 billion through seven-day reverse repos on Monday, while keeping the borrowing cost unchanged at a record low of 1.4%, with the rate serving as China's primary policy rate. The decision signaled that the central bank remains committed to an accommodative monetary stance to support the economy. In a new move, the central bank also launched overnight reverse repo operations, offering CNY 300 billion to financial institutions to provide greater flexibility in managing short-term liquidity and smoothing funding conditions in the interbank market. The central bank did not reveal the borrowing cost of its new liquidity tool, though Reuters reported policymakers had set the rate at 1.25%. The introduction of the tool comes as authorities seek to refine their liquidity management framework, ensuring ample cash in the banking system while maintaining stable money market rates.

The People's Bank of China said it will conduct overnight reverse repurchase operations on Monday and Tuesday to improve short-term liquidity management in the banking system. The move follows Governor Pan Gongsheng's remarks last week that the central bank would broaden its short-term liquidity toolkit by introducing overnight reverse repos and narrowing the interest-rate corridor for its temporary repo and reverse repo facilities. According to the PBoC, the overnight reverse repos will be carried out through fixed-rate, quantity-based bidding. Pan also said the central bank will optimize its temporary overnight repo and reverse repo operations by narrowing the interest-rate corridor to 50 basis points from 70 basis points, a step aimed at strengthening interest-rate guidance and improving the effectiveness of monetary policy implementation.

The People's Bank of China announced on Wednesday several measures to improve its short-term interest rate framework, signaling a possible shift toward using the overnight policy rate as its main benchmark instead of the current seven-day reverse repo rate. Governor Pan Gongsheng said the central bank will narrow the interest rate corridor for its temporary overnight repo and reverse repo facilities while increasing overnight reverse repo operations. He said further that the central bank is developing tools to provide emergency liquidity to non-bank financial institutions during times of market stress. Chinese authorities also rolled out new measures to promote the yuan's international use, including a repo facility allowing foreign monetary authorities and sovereign wealth funds to access yuan liquidity using bonds as collateral, alongside a pilot program for offshore yuan foreign exchange trading in the Shanghai Free Trade Zone.

The People's Bank of China (PBoC) left its daily liquidity injections unchanged at zero for a second consecutive session on Thursday, following the first suspension of seven-day reverse repo operations in nearly two years a day earlier. The central bank said the zero-volume operation reflected the needs of primary dealers in open market operations. The move has drawn market attention as it comes despite ample liquidity in the banking system. The consecutive zero operations suggest policymakers are comfortable with current funding conditions and see no immediate need to inject additional cash into the financial system.

The People’s Bank of China (PBoC) announced on Wednesday that it conducted zero reverse repo operations, citing primary dealers' funding needs in its open market operations. The move marked the first time since August 2024 that the central bank injected no liquidity through reverse repos, according to Reuters calculations. The absence of operations suggests that liquidity conditions in the banking system were deemed adequate, reducing the need for short-term cash injections by the PBoC.

The People's Bank of China conducted a CNY 118.6 billion seven-day reverse repo operation on Thursday, December 11, keeping the interest rate unchanged at 1.4%. With CNY 180.8 billion in reverse repos maturing the same day, the operation resulted in a net liquidity withdrawal of CNY 62.2 billion. Meanwhile, the Ministry of Finance announced it will roll over CNY 750 billion in special treasury bonds maturing on Friday. An equivalent amount will be issued to designated banks on the interbank market, comprising CNY 400 billion in 10-year bonds and CNY 350 billion in 15-year bonds. The proceeds will be used solely to repay the maturing principal. The ministry stressed that the rollover is a like-for-like replacement and will not expand the fiscal deficit.

The People’s Bank of China (PBOC) conducted CNY 487 billion (USD 68.56 billion) in seven-day reverse repos through open market operations on September 18, at an interest rate of 1.4%, unchanged from the previous period. With CNY 292 billion in seven-day reverse repos maturing on the same day, the central bank achieved a net injection of CNY 195 billion, continuing its efforts to inject liquidity into the banking system.The move came just hours after the US Federal Reserve’s decision to cut interest rates by 25 basis points. The seven-day reverse repo rate now serves as the economy's main policy rate. The PBOC last lowered the seven-day reverse repo rate by 10 basis points in May.

The People’s Bank of China (PBOC) on Thursday injected CNY 158.6 billion into the banking system through seven-day reverse repos at a reduced rate of 1.4%, down from 1.5% the previous day. The move, announced on Wednesday, is part of a broader package of monetary easing measures aimed at stabilizing growth as external pressures mount.

The People's Bank of China (PBoC) indicated the possibility of reducing interest rates from the current 1.5% "at an appropriate time" this year, according to a report by Reuters, citing the Financial Times. The remarks were consistent with the Chinese Politburo's December decision to shift the country's monetary policy stance from 'prudent' to 'appropriately loose', the first such shift in 14 years, aimed at bolstering the sluggish economy. Meanwhile, a PBoC official, Wang Xin, suggested that policymakers might further lower borrowing costs and the reserve requirement ratio for commercial banks in 2025. The central bank also highlighted that its interest rate reform program would prioritize 'interest rate adjustments' over 'quantitative objectives' for loan growth. This modification underscores a broader commitment to developing a more market-oriented interest rate framework, as policymakers aim to revamp the monetary policy structure to align more closely with global standards.

The People’s Bank of China allocated CNY 981 billion in seven-day reverse repos to counterbalance factors like the maturing medium-term lending facility (MLF) and tax payments, it said in a statement. This marked the largest single-day cash injection via bond reverse repurchase agreements since 2020. Meanwhile, a significant CNY 1.45 trillion in MLF loans is due to mature soon.

The People’s Bank of China (PBoC) on October 16 injected CNY 642.4 billion through seven-day reverse repos. However, with CNY 789 billion worth of MLF loans and another CNY 61 billion of reverse repo loans due to expire on October 17, this resulted in a net cash withdrawal of CNY 207.6 billion for the day. Wednesday's operation was aimed at offsetting the impact of maturing MLF and reverse repo loans, as the central bank sought to maintain liquidity in the banking system at a reasonable level.

The People’s Bank of China (PB)C) slashed a key short-term policy rate for the first time since August 2023 to support economic growth while shifting toward a new policy benchmark. The central bank launched a CNY 58.2 billion reverse repurchase operation into the banking system while lowering the seven-day reverse repo rate by 10bps to 1.7% from 1.8%. The move aims to optimize the open market operation mechanism and increase financial support for the economy, the PBOC said in a statement Monday. The decision came after official data released last week showed the GDP growth eased to 4.7% yoy in Q2 of 2024, the weakest since Q1 of 2023, while ahead of the loan prime rate (LPR) June fixing later today.