Monetary Policy & Money Markets
How the PBoC steers liquidity, funding rates and credit transmission.
A core PBoC open-market rate used to influence short-term funding conditions and the interbank liquidity environment.
↗02Loan Prime Rate (LPR)A bank lending reference rate quoted by designated banks and linked to the transmission of monetary policy into loan pricing.
↗03Medium-term Lending Facility (MLF)A PBoC liquidity facility that provides medium-term funding to eligible financial institutions and has played an important role in China’s policy transmission framework.
↗04Reserve Requirement Ratio (RRR)The share of eligible deposits banks must hold as required reserves, making changes in the ratio an important structural liquidity tool.
↗05Standing Lending Facility (SLF)A PBoC facility designed to provide liquidity support to eligible financial institutions and help form the upper side of the interest-rate corridor.
↗06Pledged Supplementary Lending (PSL)A targeted central-bank funding facility historically associated with policy-bank financing and selected policy objectives.
↗07DR007: China’s 7-Day Depository-Institution Repo RateA widely watched seven-day pledged repo rate for transactions involving depository institutions, often used to read interbank funding conditions.
↗08DR001: China’s Overnight Depository-Institution Repo RateAn overnight repo reference that captures very short-term funding conditions among depository institutions.
↗09R007: China’s 7-Day Interbank Repo RateA seven-day repo-market rate with a broader participant set than DR007, useful for understanding funding conditions beyond depository institutions.
↗10SHIBOR: Shanghai Interbank Offered RateA family of unsecured interbank offered rates published across maturities and used as a reference within China’s money markets.
↗11PBoC Open Market OperationsThe operational framework through which the PBoC injects or withdraws liquidity using instruments including reverse repos and other transactions.
↗12China’s Interest-Rate CorridorThe set of policy and market rates that helps anchor short-term money-market pricing around the PBoC’s desired operating conditions.
↗13PBoC Relending FacilitiesCentral-bank funding programmes that channel liquidity toward designated sectors or policy objectives through financial institutions.
↗14PBoC Rediscount PolicyA central-bank instrument connected to eligible bills and targeted liquidity provision within China’s credit system.
↗15How Monetary Policy Transmits in ChinaA reference map linking PBoC operating tools, interbank rates, bank funding, loan pricing, bond yields, credit creation and the exchange rate.
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