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 ?
All other things equal, the supply of credit in the financial markets increases or decreases as the monetary base increases or decreases, regardless of whether the change in the monetary base is due to Fed lending or open market operations.
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.
The amount of the open market operations suggested by the Desk's operating procedure, which I call the operating procedure-determined open market operation ([OPDOMO.
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.
On Thursday, People s Bank of China to inject RMB30 billion into the system through open market operation .
The transactions were part of a series of open market operation that began in 2009.
market participants had to infer changes from the type of open market operation conducted and the level of the federal funds rate relative to their perceptions about the FOMC's target rate.
The Reserve Bank of India (RBI) said it would buy bonds worth up to INR100bn via open market operations (OMO).
The central bank suspended open market operations on Feb.
by conducting temporary and permanent open market operations (OMOs).
He explained that the Bank has changed the rate of legal monetary reserves from 13% to 15% for absorbing the liquidity and that the Central Bank will also take further procedures in the framework of open market operations with the same purpose.
According to a statement by the PBOC on its website, it will also fiddle with the credit supply and maintain financing at a logical growth under a macro-prudential policy frame with a set of policy tools such as open market operations, exchange rates, banks' reserve requirement ratio and the interest rates.