PBOC adjusts ad hoc repo rates by 25bp, clarifies rules
The People's Bank of China (PBOC) has optimized its operational arrangements for overnight ad hoc repo/reverse repo operations as of June 17, 2026. This includes adjusting the operation window and setting the interest rate at 7-day reverse repo rate plus or minus 25 basis points, alongside clarified usage rules.
New parameters for overnight operations
The People's Bank of China (PBOC) has optimized its operational arrangements for ad hoc overnight repo and reverse repo facilities, effective June 17, 2026.
The operation window is now adjusted to 15:00-15:30 on working days.
The interest rate will be the 7-day reverse repo rate plus or minus 25 basis points.
Rules for facility use have also been clarified, enhancing flexibility and efficiency in open market operations.
Supporting money market stability
The PBOC's optimization aims for more flexible and efficient use of its ad hoc facilities.
Operations will be conducted when the overnight money market rate (DR001) persistently deviates from the facility's interest rate, responding to primary dealer demands.
This ensures targeted liquidity management and supports money market stability.