world-economy

China's Central Bank Signals Framework Shift Toward Overnight Rate Policy

China's central bank signaled a potential shift in its interest rate framework with a focus on the overnight policy rate. People's Bank of China Governor Pan Gongsheng announced at the Lujiazui Forum in Shanghai that the PBOC will improve its adjustment of short-term interest rates and expand its suite of overnight reverse repurchase operations at an appropriate time. This move would bring China's monetary framework more in line with global peers that use overnight rates as primary policy tools.