风口智库｜呵护年底流动性，央行时隔近三个月重启14天期逆回购操作

Core Viewpoint - The People's Bank of China (PBOC) has initiated a total of 1,883 billion yuan in reverse repos, including 883 billion yuan for a 7-day term and 1,000 billion yuan for a 14-day term, to stabilize market liquidity as year-end financial pressures mount [1][2][4]. Group 1: Reverse Repo Operations - The PBOC conducted a 7-day reverse repo operation of 883 billion yuan at an interest rate of 1.40% [1]. - The 14-day reverse repo operation, reintroduced after nearly three months, amounts to 1,000 billion yuan, which is slightly above the average level for the same period in previous years [2][4]. - The 14-day reverse repo serves as a tool for short-term liquidity adjustment, allowing financial institutions to access funds while providing collateral in the form of government bonds [3]. Group 2: Market Impact and Strategy - The timing of the 14-day reverse repo aligns with year-end practices, as financial institutions face increased liquidity demands due to year-end assessments and potential cash withdrawals by residents [4]. - The operations aim to smooth out year-end liquidity fluctuations, ensuring that market liquidity remains ample and preventing spikes in interest rates [4]. - The PBOC's approach is characterized as a measured response to actual funding needs, balancing liquidity support without excessive market flooding [4]. Group 3: Future Monetary Policy Outlook - The central economic work conference emphasized the continuation of a moderately loose monetary policy, focusing on stable economic growth and reasonable price recovery [5]. - The PBOC is expected to utilize a combination of short-term and medium-term tools to manage liquidity effectively, including potential further reverse repos and MLF operations [6]. - A possible reserve requirement ratio (RRR) cut is anticipated in January 2026, which could inject approximately 1 trillion yuan into the market, supporting lending and signaling a commitment to economic stability [6].