Core Viewpoint - The People's Bank of China (PBOC) has announced adjustments to the 14-day reverse repurchase operations, shifting to a fixed quantity, interest rate bidding, and multiple price bidding, indicating a moderately loose monetary policy stance ahead of the holiday season [1][2] Group 1: Monetary Policy Adjustments - The initiation of the 14-day reverse repurchase operation earlier than in previous years aims to provide liquidity for institutions ahead of the National Day holiday, ensuring ample liquidity [1] - The actual occupation period for this operation will reach 17 days, which, combined with a previous net injection of 300 billion yuan through reverse repos, will help alleviate the preventive funding needs of institutions before the quarter-end and holiday [1] Group 2: Changes in Auction Mechanism - The shift from a fixed interest rate to an American-style bidding process for the 14-day reverse repurchase operation is seen as a move to strengthen the policy rate status of the 7-day reverse repurchase [2] - This change allows for a more market-driven pricing mechanism, reflecting differentiated funding needs among institutions, and clarifies the policy rate attribute of the 7-day reverse repurchase [2] Group 3: Future Implications - The announcement indicates that the timing and scale of the 14-day reverse repurchase operations will be determined based on liquidity management needs, allowing for more flexible operations compared to past practices [2] - The PBOC may utilize a combination of long, medium, and short-term operations to smooth out the rhythm of fund injection and withdrawal, leading to more precise and efficient liquidity management [2]
14天期逆回购机制迎调整,央行释放何种信号?
Jin Rong Shi Bao·2025-09-19 10:25