China's central bank is considering switching its main policy rate from the seven-day reverse repo rate to the overnight reverse repo rate to improve monetary policy transmission. PBOC Governor Pan Gongsheng said the interbank overnight repo rate has effectively become the bank's target rate, and the change does not amount to a rate cut. The overnight repo rate averaged around 1.25%, near a five-month low and below the 1.4% seven-day reverse repo rate. The PBOC also plans to reform loan pricing so that some strong firms can use the overnight repo rate or the LPR as the floating-rate benchmark, while widening access to its Standing Lending Facility and creating a liquidity tool for non-bank financial institutions.
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Related tickers and likely impact
VNINDEX
• NeutralRelevance: low
| Market | Vietnam stocks |
|---|---|
| Close on 10/19/2026 | 1,689.84 |
| Change that session | -0.94% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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