On October 19, Pan Gongsheng, Governor of the People's Bank of China, said at the 2026 Financial Street Forum annual meeting that research will take the opportunity to switch the central bank's open market operating period to overnight, and the open market overnight repurchase rate will accordingly become the main policy interest rate. Industry experts interviewed said that with the establishment of the policy interest rate status of the overnight reverse repurchase rate, the “anchor change” of policy interest rates has come to fruition. After the adjustment, the monetary policy position can be conveyed more clearly, and the term mismatch between policy interest rates and regulated target interest rates can be resolved. Experts also suggested that this reform of the interest rate regulation mechanism is not tantamount to cutting interest rates; the market should not overinterpret it.

On October 19, Pan Gongsheng, Governor of the People's Bank of China, said at the 2026 Financial Street Forum annual meeting that research will take the opportunity to switch the central bank's open market operating period to overnight, and the open market overnight repurchase rate will accordingly become the main policy interest rate. Industry experts interviewed said that with the establishment of the policy interest rate status of the overnight reverse repurchase rate, the “anchor change” of policy interest rates has come to fruition. After the adjustment, the monetary policy position can be conveyed more clearly, and the term mismatch between policy interest rates and regulated target interest rates can be resolved. Experts also suggested that this reform of the interest rate regulation mechanism is not tantamount to cutting interest rates; the market should not overinterpret it.