Operational Standing Facilities: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Expand. Source: Bank of England Red Book June 2015 p10.) |
imported>Doug Williamson (Layout.) |
||
| Line 4: | Line 4: | ||
The Bank of England's Operational Standing Facilities (OSF) are part of its Sterling Monetary Framework (SMF). | The Bank of England's Operational Standing Facilities (OSF) are part of its Sterling Monetary Framework (SMF). | ||
The OSFs are the: | The OSFs are the: | ||
Revision as of 16:01, 7 August 2016
Bank of England.
(OSF).
The Bank of England's Operational Standing Facilities (OSF) are part of its Sterling Monetary Framework (SMF).
The OSFs are the:
- Operational Standing Lending Facility.
- Operational Standing Deposit Facility.
The facilities are overnight and on demand, at predetermined fixed interest rates.
As part of the SMF, the OSFs' purposes are to:
- Provide a mechanism to bring about a close alignment of money market rates and the Official Bank Rate.
- Provide a means for banks and other SMF participants to manage any temporary liquidity shortages arising from technical problems in their internal payments and settlement systems, or in the market-wide payments and settlements infrastructure.
