Chinese Yuan: Policy-rate tweak leaves appreciation view intact – Commerzbank

Commerzbank’s Volkmar Baur explains that the PBoC will shift its operational policy rate from the 7‑day to the overnight reverse repo, aligning with actual money‑market usage and previously signaled testing at 1.25%. Bond yields and markets had already priced this lower rate, and Commerzbank still expects a gradual appreciation of the CNY, driven more by PBoC guidance than rate differentials.