# China’s Central Bank Makes the Overnight Repo Rate Its Main Tool

> The People's Bank of China will move its main liquidity operations to a 1.25% overnight reverse repo rate from 2 November. The 7-day reverse repo, at 1.40%, shifts to fixed-quantity operations mainly around tax and month-end periods.

- Date: 2026-11-01 · published 2026-11-01T23:41:29.649Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/74248-china-s-central-bank-makes-the-overnight-repo-rate-its-main-tool
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

This is a monetary policy framework change with little direct effect on feed commodity prices, though it may shape Chinese liquidity and yuan conditions that affect import demand.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-04-11 | [China central bank governor says market-determined exchange rate is working very well](https://feedsoft.ai/events/65711-china-central-bank-governor-says-market-determined-exchange-rate-is-working.md) | +0.0% | +1.4% |
| USDCNY | 2018-08-31 | [Liquidity fears cause renewed concerns for China's central bank \| The National](https://feedsoft.ai/events/63743-liquidity-fears-cause-renewed-concerns-for-china-s-central-bank-the-national.md) | +0.0% | +0.4% |
| USDCNY | 2021-01-26 | [Chinese Yuan Outlook: Tightening Measures From China’s Central Bank Sends A Warning Shot To Risk Markets](https://feedsoft.ai/events/49363-chinese-yuan-outlook-tightening-measures-from-china-s-central-bank-sends-a.md) | -0.2% | -0.2% |
| USDCNY | 2019-03-26 | [China's efforts to make Yuan rate more transparent gain momentum – Bloomberg — Octa](https://feedsoft.ai/events/60337-china-s-efforts-to-make-yuan-rate-more-transparent-gain-momentum-bloomberg-octa.md) | +0.0% | +0.0% |
| USDCNY | 2017-08-17 | [Markets still bewildered after China central bank explains yuan 'X'-factor - The Business Times](https://feedsoft.ai/events/69677-markets-still-bewildered-after-china-central-bank-explains-yuan-x-factor-the.md) | -0.5% | -2.1% |

## Sources

- fiscalhour.com: https://fiscalhour.com/articles/2026-11-01-pboc-overnight-reverse-repo-rate/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.