The bid interest rate for outright reverse repos does not add to the monetary policy toolkit.

GoldenOctober2024

2024-10-28 03:39:03

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Golden Ten Data reported on October 28 that experts said that the outright reverse repurchase adopts Intrerest Rate bidding, multiple price points to win the bid, and the tool is positioned as a Liquidity delivery tool, and will not add a monetary policy tool to win the bid for Intrerest Rate. Institutions can choose different Intrerest Rate bids according to their own conditions, and win bids in order from high to low, and the winning Intrerest Rate of institutions is their own bidding Intrerest Rate. Dong Ximiao, chief researcher of Zhaolian, said that this can not only reduce the “free-riding” behavior of institutions in the bidding of Intrerest Rate, but also more truly reflect the degree of demand for funds of institutions; It is also due to the fact that no new monetary policy tool has been added to win the bid for Intrerest Rate, highlighting the positioning of the tool only as a Liquidity delivery tool.

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