PBOC Governor Pan Gongsheng spoke at the opening ceremony of the 2026 Financial Street Forum Annual Meeting in Beijing on 19 October. He outlined five proposed policies and gave updates on the digital RMB and artificial intelligence.
On the monetary policy framework, Pan proposed studying a timely switch of the main open market operation tenor from seven days to overnight. Under the proposal the overnight repo rate would become the main policy rate, while diversified lending rate pricing benchmarks would be promoted and the deposit and lending benchmark rates retired.
OVERNIGHT REPO RATE SET TO BECOME BENCHMARK
The change would end the long-standing status of the 7-day reverse repo as the policy rate. It would also formally confirm the benchmark role of the interbank overnight repo rate, known as DR001, in the interest rate system.
The PBOC injected CNY 80 billion via 7-day reverse repos at an unchanged rate of 1.40%. Governor Pan Gongsheng reiterated that the central bank will maintain a moderately loose monetary policy.
YUAN FIXING COMES IN WEAKER THAN EXPECTED
The PBOC set the USD/CNY midpoint at 6.7208, against a previous setting of 6.7220. The midpoint had been expected at 6.6897.
AI AND DIGITAL YUAN ON THE AGENDA
On artificial intelligence, the PBOC said it intends to support development of the AI industry while proceeding prudently with financial applications. It will monitor and assess AI's impact on productivity, employment, income distribution and financial stability, and provide appropriate financial support accordingly.
A financial technology track at the forum will focus on blockchain and artificial intelligence. Planned releases include the central bank's digital yuan system and a digital yuan smart contract ecosystem framework.
FORUM DRAWS REGULATORS AND FOREIGN DELEGATES
The forum drew more than 400 delegates from 40 countries and regions and runs through 22 October. Key speakers include Pan, Financial Regulator Bureau Director Ding Xiangqun, China Securities Regulatory Commission Chairman Wu Qing and State Administration of Foreign Exchange Director Zhu Hexin.
Pan's international engagements came in the days before the forum. He attended the 54th IMFC Meeting in Bangkok on 16-17 October and met central bank leaders from nine countries between 14 and 16 October. He was also reportedly scheduled to meet BoJ counterparts on the sidelines of the IMF annual meeting in Bangkok.