FINANCE

China Tweaks Short-Term Rates to Better Steer Markets

Published: Jun. 17, 2026 6:47 p.m. GMT+8

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The People’s Bank of China. Photo: VCG

China’s central bank has narrowed the interest rate corridor for its overnight ad hoc operations, an adjustment aimed at improving short-term liquidity management.

Speaking Wednesday at the Lujiazui Forum in Shanghai, People’s Bank of China (PBOC) Governor Pan Gongsheng announced that rates for overnight ad hoc repos and reverse repos are now set at 25 basis points below and above the seven-day reverse repo rate, respectively.

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PBOC narrowed overnight ad hoc repo corridor from 70 to 50 basis points.
Rates set at 25 bps below and above the seven-day reverse repo rate.
Daily operation window moved to 3–3:30 p.m. to improve short-term liquidity management.

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June 17, 2026：: PBOC Governor Pan Gongsheng announced at the Lujiazui Forum in Shanghai that rates for overnight ad hoc repos and reverse repos are now set at 25 bp below and above the seven-day reverse repo rate, respectively, compressing the corridor to 50 bp from 70 bp, and advancing the daily operation window to between 3 p.m. and 3:30 p.m.

AI generated, for reference only