On June 11, 2025, the People’s Bank of China (PBOC) conducted a 7-day reverse repo operation injecting 164 billion yuan into the banking system, with the winning rate set at 1.40%. The operation, executed through volume-based bidding, was fully subscribed, reflecting balanced liquidity conditions.
This move maintains the PBOC’s steady liquidity approach, keeping short-term rates stable amid moderate seasonal demand. The unchanged 1.40% rate signals policy consistency, with analysts noting similar operations may continue through mid-year cash calls.
Market impact appears muted, as interbank rates hold near guidance levels. Traders await June’s MLF operations for clearer medium-term policy signals.
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