Illya Gerasymchuk
Entrepreneur / Engineer
the majority of liquidity is actually created in wholesale short-term debt markets
ON RRP addresses exactly that sector, thus setting the lower bound of the target interest rate corridor for the broader financial sector
ON RRP further reinforces the the floor for the market-wide interest rates
since it's accessible to a broader set of financial institutions - not only banks. those now also have little incentive to lend below the ON RRP rate