The central bank adjusts the rules of the 14-day reverse repurchase operation. Experts: Show a moderately loose monetary policy orientation.

On September 19, the People's Bank of China announced that in order to maintain the ample liquidity of the banking system and better meet the differentiated funding needs of different participating institutions, starting from today, the 14-day reverse repurchase operations in the open market will be adjusted to fixed quantity, rate tender, and multiple price bidding. The timing and scale of the operations will be determined according to liquidity management needs. "Launching the 14-day reverse repurchase operations early to inject funds across the holidays demonstrates a moderately loose monetary policy orientation." Industry experts said that in recent years, the central bank usually initiates the 14-day reverse repurchase operations before the "eleven" holiday and the Spring Festival holiday, with the timing of initiation flexibly adjusted according to holiday arrangements and institutional needs to provide funds across the holidays in advance and maintain ample liquidity. "After changing to multiple price bidding, the 14-day reverse repurchase operations will no longer have a unified bid rate, allowing institutions to fully exercise their market-based pricing autonomy and better reflect the differentiated funding needs of institutions. The policy rate nature of the interest rate for the 7-day reverse repurchase operations in the open market is clearer," the expert said.