Experts estimate that overnight reverse repos may become the core policy tool for short-term liquidity of the People's Bank of China.

Wang Qing, chief macro analyst at Dongfang Jincheng, told reporters that the operation volume of the 7-day reverse repos has been zero in the recent trading days, and the overnight reverse repos commenced in mid-August indicate that the current adjustments to market interest rates by the People's Bank of China are becoming more precise. This suggests that the operation of market interest rates will be more stable going forward; at the same time, it also means that overnight reverse repos may gradually replace 7-day reverse repos in the future, becoming the core policy tool for short-term liquidity adjustments by the People's Bank of China.