PBoC shifts primary policy anchor to overnight rate with daily 1.25% reverse repos

What happened: The People's Bank of China said it is shifting its short-term monetary policy framework toward the overnight rate and introduced daily overnight reverse repo operations at a fixed rate of 1.25%. Key numbers: 1.25% fixed overnight reverse repo rate; daily operations. Why it matters: The new 1.25% overnight rate replaces the long-standing seven-day rate as the framework's anchor, per the content. Coverage: 3 outlets in 24h

The People's Bank of China said it is shifting its short-term monetary policy framework toward the overnight rate and introduced daily overnight reverse repo operations at a fixed rate of 1.25%.

The new 1.25% overnight rate replaces the long-standing seven-day rate as the framework's anchor, per the content.