Saturday, May 14, 2011

the key interest rates


the key interest rates

There are seven members of the policy, four of
who are appointed by the government and approved by both houses of the diet (Japanese Parliament). ¬ There are four representatives from the private sector initiatives, one of the Bank of Japan and two from the government. The government members, taken by the Ministry of Finance and Economic Planning Agency, not eligible to vote.
Germany - the key interest rates. Prices to watch are:
Repo rate - sets the tone for the money market rates.
The discount rate - sets the floor for money market rates. Lombard rate - sets the ceiling for money market rates. Repo rate is now the main tool for guiding the flow ¬
overnight money market rate. Repos enable the Bundesbank to ad ¬ just the monetary policy without changing the headline rates. A change from fixed to variable rate repo (or vice versa), may indicate a change of policy. But while the higher rates of variable rate repo reflect higher bid for funds from banks, they do not necessarily point to tighter policy in the short term (and vice versa).
The discount rate usually sets the floor for money market
rates, while the Lombard rate usually sets the ceiling. Thus, the discount rate is more, when interest rates are falling, while the Lombard rate is the rate Kev when interest rates are praised ¬ ing.
main instruments of the Bundesbank is or desiened
for long min major policy changes or fine-tune the money
market.
the key interest rates Bundesbank monetary oolicv sets and is the most in ¬
depending on the group of seven central banks. She has a legal ob ¬ ligation to protect the external value of the mark. Without preju ¬ general performance of its functions, the Bundesbank is required to support the general economic policy of the federal government. Using its powers under the Bundesbank, the Law on the Central Bank is independent from instructions from the federal government.

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