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PBOC Overnight Rate Shift Signals China’s Push for More Precise Monetary Policy

Beijing, 26 June 2026 – China’s central bank is moving closer to a more market-guided interest-rate framework as investors expect the People’s Bank of China to set a new overnight operation rate near 1.35%, marking another step in the reform of its monetary policy toolkit.

The PBOC is set to introduce overnight reverse repo operations on 29 and 30 June, a move aimed at improving control over short-term liquidity and guiding funding costs more precisely during periods of seasonal demand.

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Author

  • Rebecca Hsu is a Senior Economist and Lead Analyst for The Ledger Asia, focusing on the rapidly evolving financial landscapes of East and Southeast Asia. With a background in sovereign risk assessment and emerging market trends, Rebecca provides sharp commentary on trade dynamics, monetary policy, and the digital economy's impact on regional growth.

    Formerly a strategic advisor for major financial institutions in Hong Kong, she excels at translating complex macroeconomic shifts into actionable insights for investors and policymakers. Her work at The Ledger Asia centers on China’s economic transition and the burgeoning manufacturing hubs of ASEAN, ensuring readers stay ahead of Asia’s shifting financial tides.

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