PBOC's Pan: Will act if money market overnight rate persistently deviates from operation rates
Por Dhwani Mehta
Atualizado: 17 Jun 2026
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The People’s Bank of China (PBOC) Governor Pan Gongsheng said on Wednesday that the central bank would act if the money market overnight rate persistently deviates from operation rates.
The People’s Bank of China (PBOC) Governor Pan Gongsheng said on Wednesday that the central bank would act if the money market overnight rate persistently deviates from operation rates.
Additional quotes
To adjust the temporary overnight reverse and outright repurchase agreement time to 3-3:30 pm.
Meant to ensure flexible and efficient use of temporary overnight reverse and outright repurchase agreements in the open market.
Operating rates will be set at the 7-day reverse repurchase rate in the open market minus 25 basis points and plus 25 basis points, respectively.
Will initiate the action when the money market overnight rate remains consistently below or above the respective operation rates of the tools.
Will provide yuan liquidity to eligible overseas central bank-type institutions through the FIMA RMB repo facility
FIMA RMB repo will accept high-grade yuan bonds, including Chinese government bonds
To issue an action plan for developing offshore finance in the Shanghai International Financial Center.
Yuan to be expanded in offshore business scenarios.
Shanghai to study feasibility of setting up offshore banks.
PBOC FAQs
The primary monetary policy objectives of the People's Bank of China (PBoC) are to safeguard price stability, including exchange rate stability, and promote economic growth. China’s central bank also aims to implement financial reforms, such as opening and developing the financial market.
The PBoC is owned by the state of the People's Republic of China (PRC), so it is not considered an autonomous institution. The Chinese Communist Party (CCP) Committee Secretary, nominated by the Chairman of the State Council, has a key influence on the PBoC’s management and direction, not the governor. However, Mr. Pan Gongsheng currently holds both of these posts.
Unlike the Western economies, the PBoC uses a broader set of monetary policy instruments to achieve its objectives. The primary tools include a seven-day Reverse Repo Rate (RRR), Medium-term Lending Facility (MLF), foreign exchange interventions and Reserve Requirement Ratio (RRR). However, The Loan Prime Rate (LPR) is China’s benchmark interest rate. Changes to the LPR directly influence the rates that need to be paid in the market for loans and mortgages and the interest paid on savings. By changing the LPR, China’s central bank can also influence the exchange rates of the Chinese Renminbi.
Yes, China has 19 private banks – a small fraction of the financial system. The largest private banks are digital lenders WeBank and MYbank, which are backed by tech giants Tencent and Ant Group, per The Straits Times. In 2014, China allowed domestic lenders fully capitalized by private funds to operate in the state-dominated financial sector.
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