The central bank announced a new benchmark interest rate, the overnight repo
rate, on Wednesday and set it at 12 percent with immediate effect.
As a result, the overnight repo
rate remained (on average) 2 bps below the policy rate of 6.
75 percent, instead of 4 per cent, and overnight repo
rate to 3.
Based on the approximately $400 billion per day of overnight repo
transactions in the specific index asset classes processed daily on BNY Mellon's Tri-Party Repo platform, the new BNY Mellon U.
In order to prevent excessively worsening of liquidity conditions, which would have impacted financing conditions, RBI undertook measures to inject liquidity through OMO purchase auctions, overnight repo
, MSF and variable rate term repos.
The RBI currently sets monetary policy through rates for its overnight repo
and reverse repo operations.
Combine the overnight repo
market with the collateralized portion of the derivatives markets and we have a financial market bigger than the FDIC-insured banking system.
At the overnight repo
auction the limit of 290 bln rubles remained untaken for the first time after many days
If a Tobin tax induced financial institutions to finance themselves with more longer-term debt and less overnight repo
, it could play a significant stabilizing role.
CORRA (Canadian Overnight Repo
Rate), and 1-, 2-, and 3-month CDOR (Canadian Dealer Offered Rate) rates are used to interpolate the risk free rates of each maturity.
That would bring the shadow banking system back within the regulated system, extending deposit insurance to overnight repo
and money market mutual funds.
He elaborated the monetary policy mechanism where policy rate, Open Market Operations (OMOs), Cash Reserve Requirement (CRR), Statutory Liquid Requirement (SLR) are the key instruments and the money market overnight repo
rate is considered the operational target.