China’s Central Bank Plans Shift to Overnight Rate as Key Policy Benchmark

China’s central bank will study switching its main open market operations (OMOs) to an overnight tenor, making the interbank overnight repo rate its primary policy rate, while broadening the benchmarks used to price loans, Governor Pan Gongsheng said Monday.

Speaking at the Financial Street Forum annual conference, Pan said the People’s Bank of China (PBOC) would continue refining its monetary policy framework, with a near- to medium-term focus on improving interest rate adjustment.