China’s central bank ran its first overnight reverse repo operation on June 29, and it did so without telling anyone what it cost to borrow. That detail, the interest rate, remains undisclosed.
What the PBOC actually did
The central bank announced on June 25 that it would conduct overnight reverse repo operations on June 29 and 30 to address liquidity demand at month-end. These operations use fixed-rate, quantity-based bidding, meaning the PBOC sets the price and banks bid for the volume they want.
The rate itself has not been published. Analysts anticipate it will fall somewhere between 1.3% and 1.35%, which would sit just below the current 7-day reverse repo rate of 1.40%. That 7-day rate was already cut by 10 basis points in May 2025.
Why the PBOC is building a new shelf in its toolkit
