PBOC Governor Pan Gongsheng said the overnight reverse repo rate will eventually replace the seven-day rate as the main policy rate, at an appropriate time. Overnight repos are the most heavily traded product in the interbank market, and their DR001 rate is already a target of PBOC operations, which would make the central bank's guidance more precise. The overnight repo rate held steady at 1.26%, while overnight interbank borrowing costs fell below 1.3% in October, their lowest since May, widening the gap with the seven-day reverse repo rate of 1.4%. The yuan rose 0.1% to 6.6813 per dollar in the offshore market.
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