People’s Bank of China promotes repo as benchmark interest rate

The People’s Bank of China Publishes the White Paper Participating in International Benchmark Interest Rate Reform and Improving China’s Benchmark Interest Rate System

Although China started late, compared internationally, in building benchmark interest rate system, we have the obvious first-mover advantage in cultivating benchmark interest rates based on actual transactions. Since the establishment of China interbank market, we have already cultivated benchmark interest rates based on actual transactions such as bond repo rates, which have shown a certain level of benchmarking and credibility and have been in operation for over two decades. After years of continuous cultivation, by now significant progress has been made in the construction of China’s benchmark interest rate system. Money market, bond mark, loan market, etc., have basically cultivated their own representative interest rate indicators. Depository-Institutions Repo Rate (DR), government bond yield, Loan Prime Rate (LPR), etc., have played a significant role as benchmark interest rates in corresponding financial market, providing relatively good reference in observing market operation and guiding financial product pricing.

The full white paper is available at

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