China sets overnight rate as benchmark in de facto easing
Analysts see greater transparency but expect lower rate to have limited impact on lending
China’s central bank conducted overnight reverse repurchase operations at a fixed rate of 1.25% today (November 2), thereby formally establishing a new benchmark while implementing a de facto easing of monetary policy.
The People’s Bank of China announced it had conducted 541 billion yuan ($81.2 billion) worth of the overnight repos at a fixed rate of 1.25%. The central bank had debuted the instruments with an undisclosed rate in June. The operation came after the PBoC said last week that it
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