Chinese Central Bank's Focus on Overnight Money Market Rate Sparks Speculation

The Chinese central bank's increased attention to the overnight money market rate is generating speculation about a potential shift in its primary policy target. Bloomberg posted on X, highlighting the growing interest in this financial metric. Analysts suggest that this focus could indicate a strategic move by the central bank to align its monetary policy more closely with short-term market conditions. This development comes amid broader efforts to stabilize the financial system and manage liquidity effectively. Observers are closely monitoring these changes for any signs of a formal policy adjustment.