China¡¯s central bank chief hinted at a blueprint for a new toolkit that could open the door to its biggest policy overhaul in years, as officials try to bolster growth in the world¡¯s No.2 economy.
Pan Gongsheng, governor of the People¡¯s Bank of China, gave the clearest signal yet that the authority may start trading government bonds in the secondary market, during a speech in Shanghai on Wednesday. That shift has the potential to rewire how the central bank injects money into the economy and regulate liquidity.
Pan also hinted at interest-rate reform, signaling the bank will consider moving to using a single short-term rate to guide markets. That could reduce the importance of the current one-year policy rate known as the medium-term lending facility, introduced a decade ago.
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