The RBI will manage evolving liquidity conditions for handling short-term fluctuation and open market operations
for durable basis," said Acharya.
Due to these open market operations
that injected reserves while federal funds were trading below the FOMC's target rate, an expectation set in among market participants that the Federal Reserve would not try to boost the federal funds rate when it drifted below the target rate.
The effect of Fed lending on the allocation of credit is intensified when the Fed offsets the effect of its lending activity on the total supply of credit through open market operations
Suda put the shortfall in tenders in the open market operation
in a positive light, saying the phenomenon is taking place because the financial system has been improving on the back of declining nonperforming loans.
The Chinese central bank has increasingly relied on open market operations
for liquidity management rather than cuts in interest rates or reserve requirement ratios.
With immediate effect, in accordance with the needs of the monetary policy, open market operations
will be carried out on each working day," the PBOC said, in a (http://www.
China's key money rate fell to nearly a 10-month low, shrugging off a net drain in open market operations
due to ample liquidity.
Open market operations
can be another source of liquidity to the system.
This paper uses daily data compiled by the author from the records of the Trading Desk of the Federal Reserve Bank of New York over the period March 1, 1984, through December 31, 1996: He analyzes the Desk's use of its operating procedure in implementing monetary policy and the extent to which open market operations
affect the federal funds rate--the liquidity effect.
The yield on the key 10-year Japanese government bond briefly fell to a record intraday low Wednesday morning after the Bank of Japan said it will conduct open market operations
to purchase government bonds.
By close of business Wednesday, the New York Fed had already moved some of its open market operations
to a contingency site in East Rutherford, N.
The apex bank said on Thursday that it has maintained its interest rates for open market operations