Podcast
Questions and Answers
What is the overnight reverse repurchase (RRP) rate used for in the interest rate corridor (IRC) system?
What is the overnight reverse repurchase (RRP) rate used for in the interest rate corridor (IRC) system?
- Contracting liquidity through selling government securities to banks
- Absorbing residual system liquidity to prevent market interest rates from falling
- Expanding liquidity through buying government securities from banks
- Guiding short-term market rates towards the BSP policy interest rate (correct)
What is the primary purpose of a reverse repurchase (RRP) operation by the BSP?
What is the primary purpose of a reverse repurchase (RRP) operation by the BSP?
- Guiding market rates towards the BSP policy interest rate
- Acting as the seller of government securities to contract liquidity (correct)
- Absorbing residual system liquidity to prevent market interest rates from falling
- Expanding liquidity by selling government securities to banks
What is the role of the standing overnight deposit facility in the monetary operations of the Bangko Sentral?
What is the role of the standing overnight deposit facility in the monetary operations of the Bangko Sentral?
- Guiding short-term market rates towards the BSP policy interest rate
- Absorbing residual system liquidity to prevent market interest rates from falling (correct)
- Expanding liquidity through buying government securities from banks
- Acting as the seller of government securities to contract liquidity
What does the interest rate for the overnight deposit facility depend on?
What does the interest rate for the overnight deposit facility depend on?
Which monetary instrument of the Bangko Sentral aims at influencing the underlying demand and supply conditions for central bank money?
Which monetary instrument of the Bangko Sentral aims at influencing the underlying demand and supply conditions for central bank money?