The news is here from earlier:
The Wall Street Journal (gated) recaps the move from the Bank, pointing out:
- In recent months, Chinese authorities have been recasting the PBOC’s seven-day reverse repo rate as the main policy rate while letting the shorter-term operation play a bigger role in managing liquidity, a practice more in line with those of Western central banks.
- Draining cash via the MLF tool helps facilitate the shift, economists say.
Further easing is expected from the PBoC ahead.
