the rates define the interest rate corridor in the following manner:
Illya Gerasymchuk
the rates define the interest rate corridor in the following manner:
1️⃣ Overnight Reverse Repo Rate - floor
2️⃣ Interest on Reserve Balances - supplementary floor
3️⃣ Discount Rate - ceiling
4️⃣ Standing Repo Facility - supplementary ceiling
together, ON RRP, IORB, discount rate and SRF define an interest rate corridor, composed by:
1️⃣ lower bound (floor) - the lowest possible interest rate
2️⃣ upper bound (ceiling) - the highest possible interest rate
the other market rates fluctuate between this floor and ceiling
