Experts say the policy rate may transition from 7-day to overnight; it should not be equated with a rate cut.

Wang Jian, Assistant Director of the Economic Research Institute at Guosen Securities and Chief Analyst for the Banking Sector, believes that as overnight operations become more regular, the policy rate may transition from 7-day to overnight, but this should not be equated with an interest rate cut. Guo Lei, Chief Economist at GF Securities, also mentioned that the central bank is continuously improving its monetary policy framework, and that a series of institutional designs are consistent and follow the same approach of transitioning to a price-based framework. The market should also avoid hyping the central bank's operational mechanism reform measures as an interest rate cut.