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24 Jun 2024

International Economy

The PBOC considers using a single short-term interest rate, narrowing the interest rate corridor to further clarify its monetary policy stance (Business Brief No.4068 Full Ed.)

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The PBOC considers using a single short-term interest rate, narrowing the interest rate corridor to further clarify its monetary policy stance
  • The Governor of the People’s Bank of China (PBOC) stated that China’s monetary policy remains accommodative, and signaled potential changes to its interest rate policy framework.
  • The specific details of the single short-term interest rate that the central bank will adopt have not yet been provided. Preliminarily, the PBOC is expected to use the 7-day reverse repo rate.
  • The shift to a single interest rate is expected to be gradual, and it will take some time before the details of the new interest rate are finalized.

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International Economy