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PBoC looks into narrowing interest rate corridor

Central bank elaborates on recent changes to monetary policy framework

IFF China 2020 2-02

The People’s Bank of China (PBoC) has vowed to bolster the authority of its short-term policy rate and study how to narrow its interest rate corridor to better guide market rates.

In its second-quarter monetary policy report, published on August 10, the central bank said it would clarify that the seven-day reverse repurchase (repo) rate was now its key policy rate.

The PBoC last month expanded its monetary toolkit in a bid to strengthen its day-to-day management of market interest rates. On July 8

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