open market operation


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Open-Market Operations

The buying and selling of U.S. Treasury securities. The Federal Reserve conducts open market operations as a primary way of influencing inflation and economic growth. These securities are sold at certain interest rates as a way of controlling the money supply. See also: FOMC.

open market operation

the sale or purchase by the monetary authorities of Government BONDS and TREASURY BILLS as a means of controlling the MONEY SUPPLY. See MONETARY POLICY for further discussion.
References in periodicals archive ?
Each morning, the staff at the Domestic Trading Desk decide whether an open market operation is necessary and, if so, whether it should be an outright or a temporary operation.
The regular Tuesday Open Market Operation (OMO) involves repurchase transactions for maturities of up to three months.
2) That is, if depository institutions borrowed at the discount window, the Fed would offset the effect of this increased borrowing on the monetary base by selling a comparable amount of securities in an open market operation.
If the needs for open market operations continue to decline, at least we may need to make a technical response, which allows the targeted outstanding current account balance to be missed while keeping the target range itself,'' Miyako Suda said in a speech.
The Reserve Bank will continue to monitor markets closely and is in a position to supply sufficient liquidity as required depending on market conditions via its regular Open Market Operations.
t-1] denotes the expectation operator conditional on information available before that day's open market operation and [v.
Therefore, increases in the money stock -- be they through outright "helicopter drops," through any type of open market operation, or through foreign exchange intervention -- change nothing as long as the economy remains in the equilibrium of a long-run shrinkage of the money stock.
Money market rates are expected to remain in single digit band as Open Market Operation (OMO) maturity of N309.
5 billion on 26th September 26, 2013, via the processes of Primary Market Auction (PMA) and Open Market Operation (OMO).
Analysts believe the central bank could fine-tune the huge credit by using open market operation tools.
People s Bank of China has injected a record amount of liquidity on Tuesday through open market operation.
On Thursday, People s Bank of China to inject RMB30 billion into the system through open market operation .