SRF has been introduced in 2021, due to occasional spikes of short-term funding rates outside of the corridor

this is because banks avoid using the discount rate - as that is often seen as a sign of financial distress by the broader market

Illya Gerasymchuk 2025-07-31 10:34

thus, Standing Repo Facility (SRF) further reinforces the upper part of the target interest rate corridor

in other words, it strengthens the cap on short-term interest rates