Core Viewpoint - The People's Bank of China (PBOC) has made a significant adjustment to the 14-day reverse repurchase operation mechanism, introducing a new model of "fixed quantity, interest rate bidding, and multiple price bidding," marking a key step in the transition to a price-oriented monetary policy framework [2][3]. Summary by Sections Adjustment of Reverse Repo Operations - The PBOC's announcement on September 19, 2025, states that the 14-day reverse repo operation will now be conducted using a fixed quantity, interest rate bidding, and multiple price bidding method to better meet the differentiated funding needs of various participating institutions [3]. - This adjustment enhances the policy signaling function of the 14-day reverse repo rate, which previously had limited practical implications as it was typically priced at the 7-day repo rate plus 15 basis points [3]. Flexibility in Liquidity Management - The new rules increase the flexibility of the 14-day reverse repo operation, allowing the PBOC to make more precise arrangements regarding the timing and scale of operations based on liquidity management needs, rather than only using it before long holidays [4]. Continuous Optimization of Monetary Policy Framework - The PBOC has been continuously optimizing its monetary policy operation framework, introducing several important reforms since 2024, including new tools like government bond trading and various types of repos, which enhance its liquidity management capabilities [5]. - Future efforts should focus on improving the price-oriented monetary policy framework, ensuring the core position of policy rates in monetary policy transmission, and enhancing the market-oriented pricing ability of short-term interest rates [5].
央行再次优化流动性调控工具|政策与监管
清华金融评论·2025-09-25 09:51