Norges Bank’s System for Managing Interest Rates
Journal article
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http://hdl.handle.net/11250/2504905Utgivelsesdato
2001Metadata
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The article provides an account of Norges Bank’s practical implementation of monetary policy in the money market through liquidity policy. Liquidity policy consists of Norges Bank’s operations in the money market to influence the banking system's liquidity. Liquidity policy shall be consistent with the interest rate signals given by Norges Bank through monetary policy, and ensure that changes in the key rates have a broad impact on short-term money market rates. Liquidity policy shall also facilitate efficient execution of banks’ payment settlements in the central bank. Liquidity operations shall not have an effect on money market rates that may result in a lack of clarity regarding Norges Bank’s interest rate signals.