Overnight reverse repurchase, first in the middle of the month. The central bank announced on August 12 that in order to better meet the short-term liquidity needs of the banking system, it will carry out overnight reverse repurchase operations from August 14, August 17 to August 19, using fixed interest rates and volume tenders, with a daily operation volume of no more than 600 billion yuan. For the first time since the “debut” on June 29, an overnight reverse repurchase was carried out in the middle of the month. Previously, this tool was mainly launched at the end of the month and the beginning of the month. Pang Yi, a member of the China Chief Economist Forum, believes that this operation reflects the flexibility and forward-looking nature of liquidity management. He said that from the point of view of operation, seasonal disturbances such as peak tax periods in the middle of the month and government bond issuance payments are intertwined, which can often easily cause partial tightening of short-term funding and interest rate fluctuations.

Overnight reverse repurchase, first in the middle of the month. The central bank announced on August 12 that in order to better meet the short-term liquidity needs of the banking system, it will carry out overnight reverse repurchase operations from August 14, August 17 to August 19, using fixed interest rates and volume tenders, with a daily operation volume of no more than 600 billion yuan. For the first time since the “debut” on June 29, an overnight reverse repurchase was carried out in the middle of the month. Previously, this tool was mainly launched at the end of the month and the beginning of the month. Pang Yi, a member of the China Chief Economist Forum, believes that this operation reflects the flexibility and forward-looking nature of liquidity management. He said that from the point of view of operation, seasonal disturbances such as peak tax periods in the middle of the month and government bond issuance payments are intertwined, which can often easily cause partial tightening of short-term funding and interest rate fluctuations.