International Desk: The People’s Bank of China has shifted its policy framework toward the overnight reverse-repurchase rate, setting it at 1.25% while injecting 541 billion yuan in liquidity on Monday, November 2, Reuters reported.
Under the revised framework, the central bank plans daily overnight operations, while seven-day repo transactions will be conducted at multiple rates rather than a single fixed rate. Analysts said the change could ease short-term funding conditions and affect bond yields.
The adjustment is not the same as a conventional broad policy-rate cut. Its effects on banks, credit availability and market confidence remain to be seen, particularly amid continuing concerns about property-sector debt and financial stability.
Source: November 2, 2026. Featured image: illustrative.