The People's Bank of China will increase the overnight reverse repurchase operation in its open market operations on June 29 and June 30.
The operation will adopt a fixed interest rate and quantity bidding, according to a Thursday statement.
The new rate will be an addition to the PBOC's regular seven-day reverse repo rate, currently at 1.4%, which has served as the main policy benchmark since 2024, Bloomberg reported.
Standard Chartered's Becky Liu said the move is a major step toward aligning with U.S. policy rate structures, according to the report. She added that the overnight reverse repo rate is the figure to watch and anything at 1.25% or below would amount to a de facto PBOC rate cut.