RONIA and Unconventional monetary policy: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Update due to name change.)
 
imported>Doug Williamson
(Expand page. Source: BIS https://www.bis.org/publ/cgfs63.pdf)
 
Line 1: Line 1:
Repurchase overnight interest average (sterling).
(UMP).


Introduced in 2011, RONIA is the weighted average rate to four decimal places of all sterling overnight borrowing/deposit transactions secured against collateral of [[gilts]] brokered in London by contributing European Venues and Intermediaries Association (EVIA) member firms between 00.00 hrs and 16.15 hrs UK time with all counterparties, with no minimum deal size. (Security is taken in the form of sale and [[repurchase agreement]]s - REPOs.)
Monetary policy is central government or other policy to stimulate or otherwise influence economic activity by influencing money supply or interest rates.  


The index is a weighted average overnight deposit rate for each business day. Each rate in the average is weighted by the principal amount of deposits which were taken on that day.
Historically, mechanisms for influencing the money supply have included the use of open market operations, the central bank discount rate and reserve requirements.


RONIA is published by the WMBA Ltd (part of European Venues and Intermediaries Association) in London.


'Unconventional' monetary policy includes:
*Quantitative easing (asset purchase programmes)
*Forward guidance
*Negative interest rates
*New lending operations


==See also==


* [[European Venues and Intermediaries Association]]
== See also ==
* [[Forward guidance]]
* [[Lending operations]]
* [[Negative interest rate policies]]
* [[Quantitative easing ]]
* [[Reserve requirements]]
* [[Sterling Monetary Framework]]
* [[Supply side policy]]
* [[Zero lower bound]]
* [[ZLB problem]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 20:27, 8 June 2020

(UMP).

Monetary policy is central government or other policy to stimulate or otherwise influence economic activity by influencing money supply or interest rates.

Historically, mechanisms for influencing the money supply have included the use of open market operations, the central bank discount rate and reserve requirements.


'Unconventional' monetary policy includes:

  • Quantitative easing (asset purchase programmes)
  • Forward guidance
  • Negative interest rates
  • New lending operations


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=RONIA&oldid=49429’