Pan Gongsheng, Governor of the People's Bank of China, said at the 2026 Financial Street Forum annual meeting that the transformation of the monetary policy framework is a gradual and continuous process, and the People's Bank of China will continue to evaluate and improve in the future. Looking at the near medium term, the key direction is to give more play to the role of interest rate regulation. The main aspects are as follows: First, further optimize the short-term interest rate control mechanism. Bank overnight repurchase interest rates, commonly known as DR001, are active in money market transactions and the most benchmark interest rate. They can sensitively reflect short-term capital supply and demand conditions, and have also become more stable in recent years. Judging from the current situation, the bank's overnight repurchase rate has actually become the target interest rate for the central bank's monetary policy regulation; however, at the same time, the central bank's open market operation period is still 7 days, and the two are not completely consistent. In order to further improve the accuracy of interest rate regulation, the People's Bank of China will explore opportunities to switch the central bank's open market operating period to overnight, and the open market overnight repurchase interest rate will accordingly become the main policy interest rate. The second is to promote the reform of loan interest rate pricing benchmarks, shifting from a relatively single reference to the quoted interest rate pricing in the loan market to more diverse pricing benchmarks. In the future, with the continuous improvement of diversified loan pricing benchmarks, some enterprises with strong financial capabilities can independently choose the bank overnight repurchase rate or loan market quoted interest rate as the pricing benchmark for floating interest loans after negotiations with financial institutions, and the loan market quoted interest rate can continue to play a role as a pricing benchmark for small businesses and personal loans. The pricing benchmark for bonds and financial derivatives can also consider bank overnight repurchase rates as an option. The People's Bank of China will take the opportunity to issue policy guidelines to guide financial institutions to do relevant work. At the same time, it will also continue to reform and improve the quoting mechanism for quoted interest rates in the loan market to improve the quality of quotations. The third is to withdraw from the benchmark interest rate for deposits and loans. As the market-based reform of interest rates progressed, the benchmark interest rate for deposits and loans was gradually replaced by a market-based pricing benchmark. Bank loan interest rates already have various pricing benchmarks, such as the loan market quoted interest rate and bank overnight repurchase interest rates; starting in the first quarter of this year, the People's Bank of China announced the average interest rate on deposits for each term as a reference for bank deposit pricing. In the next step, the People's Bank of China will push to replace interest accrual bases in these fields with market-based interest rate indicators to achieve the benchmark interest rate for withdrawing from financial institution deposits and loans.

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