imported>Doug Williamson |
imported>Doug Williamson |
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| ''Central banks - monetary policy - interest rates''.
| | Spot market, spot price, spot rate or spot transaction. |
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| "The policy interest rate is an interest rate that... the central bank sets in order to influence the evolution of the main monetary variables in the economy...
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| The policy interest rate determines the levels of the rest of the interest rates in the economy, since it is the price at which private agents - mostly private [commercial] banks - obtain money from the central bank.
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| These [commercial] banks will then offer financial products to their clients at an interest rate that is normally based on the policy rate."
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| ''Source: Focus Economics webpage. June 2020''
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| Examples include the US Fed funds rate, the European Central Bank's interest rate on its main refinancing operations, and the UK's Official Bank Rate.
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| == See also == | | == See also == |
| * [[Central bank]] | | * [[Forward contract]] |
| * [[Committee on the Global Financial System]] | | * [[Forward market]] |
| * [[Effective lower bound]]
| | * [[Forward rate agreement]] |
| * [[European Central Bank]]
| | * [[Spot market]] |
| * [[Fed funds]]
| | * [[Spot price]] |
| * [[Forward guidance]] | | * [[Spot rate]] |
| * [[Global Financial Crisis]]
| | * [[Spot transaction]] |
| * [[Interest rate]]
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| * [[Lending operations]] | |
| * [[Main refinancing operations]] | |
| * [[Margin compression]] | |
| * [[Negative interest rate policies]]
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| * [[Neutral interest rate]]
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| * [[Non-performing loan]]
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| * [[Official Bank Rate]]
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| * [[Quantitative easing ]]
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| * [[Reserve requirements]]
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| * [[Sterling Monetary Framework]]
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| * [[Supply side policy]]
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| * [[Unconventional monetary policy]]
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| * [[Zero lower bound]]
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| * [[ZLB problem]] | |
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Accounting,_tax_and_regulation]] |
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| [[Category:Identify_and_assess_risks]] | | [[Category:Identify_and_assess_risks]] |
| [[Category:Manage_risks]] | | [[Category:Manage_risks]] |
| [[Category:Cash_management]]
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| [[Category:Financial_products_and_markets]] | | [[Category:Financial_products_and_markets]] |
| [[Category:Liquidity_management]]
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