The focus of the central bank on monetary market interest rates has changed, with overnight rates possibly becoming a "new anchor." Short-term funding conditions are expected to remain reasonably ample.

From the perspective of policy practice, the focus of the central bank on money market interest rates has changed. At a recent press conference held by the State Council Information Office, People's Bank of China Deputy Governor Zou Lan stated that they will "guide the overnight interest rate to operate near the policy rate level." Industry insiders believe that this statement shows that the central bank's short-term interest rate control strategy is becoming clearer, with the importance of the DR001 in monetary policy operations increasing, but the 7-day reverse repurchase rate remains the core policy rate. With a clearer interest rate corridor and a more diverse range of tools, it is expected that the short-term funding environment will remain reasonably ample and balanced on the loose side.