现代中央银行系列（一）：政策利率演变与货币政策工具盘点

1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - The construction of the "modern central bank" system depends on the improvement of the "dual - pillar" of monetary policy and macro - prudential management policy. This report focuses on the formation and evolution of China's policy interest rate system and systematically reviews the development and application of various monetary policy tools, aiming to establish a theoretical and practical framework for subsequent analysis of the interest rate transmission mechanism [2][7][21]. - The current policy interest rate of the central bank has shifted to the short - end, with the 7 - day reverse repurchase rate becoming the main policy interest rate, and the Medium - term Lending Facility (MLF) rate fading out of the policy interest rate sequence [8][24][28]. - The central bank's monetary policy toolbox is diverse, and the innovation of monetary policy has obvious stage divisions. Since 2024, there have been changes in the central bank's thinking on quantity - price operations and expected management of monetary policy [9]. - Since the end of 2024, the monetary policy has changed from "prudent" to "moderately loose", and in 2026, it continues to be set as such, with more emphasis on "flexibility and efficiency" [10][135]. 3. Summary According to Relevant Catalogs Introduction - "Building a modern central bank system" is an important part of "establishing a modern fiscal and financial system". Since its proposal, the central bank has carried out reforms in multiple directions, including the short - end concentration of policy interest rates, the introduction of new open - market operation tools, and the launch of targeted structural monetary policy tools. The regulatory authorities have also given clear expectations for future reform directions [17][19]. - The report series is launched to comprehensively sort out and interpret policy reforms, and the first report focuses on the review and direction deduction of monetary policy tools and policy interest rates [19][21]. Interest Rate System Framework: Starting from Policy Interest Rates Policy Interest Rate Latest Changes: Focusing on the Short - End - China's current interest rate system is divided into three levels: the central bank's policy interest rate (currently the 7 - day reverse repurchase rate), market benchmark interest rates (including the deposit - type financial institution pledged repurchase rate, treasury bond yield, and loan prime rate), and diverse market interest rates in the money, bond, and deposit - loan markets [8][24]. - In 2024, during the process of deepening interest rate marketization reform, the central bank clearly defined the 7 - day reverse repurchase rate as the main policy interest rate. The MLF rate has faded out of the policy interest rate sequence, with adjustments in its operation time and bidding method [28][29]. Policy Interest Rate Review: Retrospect of the Development of 7 - Day Reverse Repurchase and MLF - Policy interest rates have evolved from multiple co - existing rates to the 7 - day reverse repurchase rate. Before 2015, there were many types of policy interest rates. Around 2020, the central bank established a framework with the open - market operation rate as the short - term policy interest rate and the MLF rate as the medium - term policy interest rate. From 2024 - 2025, the 7 - day reverse repurchase rate became the only policy interest rate [37][39][40]. - The 7 - day reverse repurchase has evolved from sporadic use to the most core policy interest rate. It originated in 1998, with low - frequency use from 1999 - 2007 and a suspension from 2008 - 2011. Since 2016, it has become a regular operation, and since 2020, the 7 - day term has been the main one, with its policy attribute continuously enhanced [42][46][47]. - The MLF was created in September 2014 to hedge the decline in foreign exchange reserves. Its term has been unified to 1 - year, and its scale has increased significantly. Around 2020, its operation rate independently assumed the function of the medium - term policy interest rate. Currently, it has withdrawn from the policy interest rate position and returned to its function of liquidity injection [59][63][68]. Monetary Policy Toolbox Inventory Deposit Reserves: A Long - Term Liquidity Adjustment Tool for the Banking System - The system framework of deposit reserves has been continuously improved, with the scope of the reserve base expanding and the deposit reserve ratio system undergoing multiple reforms, including the implementation of a differential deposit reserve ratio system, targeted reserve requirement cuts, and the establishment of a "three - tier and two - preference" framework, which is now simplified to a "three - tier" framework [79][80][85]. - The central bank has adjusted the deposit reserve ratio in multiple stages according to the macro - economic situation, and the reserve assessment method has changed from the point - in - time method to the average method. The central bank has also adjusted the reserve interest rate multiple times [90][94][95]. Buy - out Reverse Repurchase: Created in October 2024 to Provide Medium - and Short - Term Liquidity - The buy - out reverse repurchase is different from the traditional pledged reverse repurchase in terms of bond ownership and bidding method. Its operation has become more transparent, with a monthly rhythm of providing different - term liquidity support at different times. It has become an important channel for the central bank to inject liquidity [98][100][101]. Treasury Bond Trading: Launched in 2024 to Release Medium - and Long - Term Liquidity - Treasury bond trading was launched in August 2024, suspended in January 2025, and restarted in October 2025. It can supplement the medium - and long - term liquidity of the banking system, and the central bank's trading of treasury bonds has an impact on its balance sheet [107][110]. Other Monetary Policy Tools Overview - The central bank's monetary policy toolbox is rich, including open - market operation tools (such as central bank bills, central bank bill swaps, etc.), central bank lending tools (such as rediscount and re - loans), and innovative tools (such as standing lending facilities, pledged supplementary loans, etc.). Some tools have faded out after fulfilling their historical missions [115][117]. Current Monetary Policy Orientation: "Moderately Loose" and "Flexible and Efficient" - Since the end of 2024, the monetary policy has changed from "prudent" to "moderately loose", and in 2026, it continues to emphasize "flexibility and efficiency". The "moderately loose" policy is necessary for economic recovery and coordination with fiscal policy [10][135]. - "Flexible and efficient" implies precise implementation of policies, especially considering the limited space for reserve requirement cuts and interest rate cuts. The Federal Reserve's three interest rate cuts in 2025 have opened up policy space for domestic interest rate cuts. Although the domestic deposit reserve ratio has limited downward space, there is still room for reform, and the use of diversified liquidity injection tools can replace reserve requirement cuts to some extent [137][139][141].