Overnight Repo Rate to Become Primary Policy Rate; Experts: Move Better Conveys Monetary Stance, Should Not Be Speculated as a Rate Cut

On October 19, at the 2026 Financial Street Forum Annual Meeting, Pan Gongsheng, Governor of the People's Bank of China, stated that the central bank will study switching the maturity of its main open market operation instrument to overnight, making the overnight repo rate the primary policy rate. Industry experts noted that with the overnight reverse repo rate establishing its status as a policy rate, the 'anchor switch' for policy rates is now natural. The adjustment will more clearly convey monetary policy stances and resolve the maturity mismatch between policy rates and regulatory target rates. Experts also cautioned that this reform of the interest rate control mechanism does not equate to a rate cut, and the market should not overinterpret it.