China's recent sequence of interest rate cuts highlights a shift in its monetary policy framework, with the short-term repo rate becoming the primary signal. Analysts suggest that the People's Bank of China (PBOC) is moving away from using the Medium-term Lending Facility (MLF) as a central tool. This change comes as the Chinese economy faces weak growth, heavy debts, and falling prices, prompting authorities to take measures to support economic growth. The surprise cuts have led to lower government bond yields and are expected to be followed by further deposit rate cuts by small and medium-sized banks. The PBOC's actions underscore the urgency to bolster the economy, which underperformed in the second quarter due to faltering consumer spending despite a boom in exports. Chinese government bond futures hit new highs after the key rate was lowered.