AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
5min snip
Global Rates: Hawkish cuts and dovish holds
At Any Rate
Central Bank Liquidity Management
- The Bank of England (BOE) is transitioning to a demand-driven reserve framework, using repo facilities as the primary liquidity provision mechanism.
- This shift involves recalibrating the existing long-term repo facility and utilizing the short-term repo facility.
- The BOE aims to use these facilities as a stopgap to maintain reserve levels and ensure stability amid quantitative tightening (QT).
- Similarly, the Federal Reserve (Fed) lowered its overnight RRP rate to manage liquidity and support ongoing QT.
- The Fed's aim is to prevent increased usage of the reverse repo facility and continue draining it, though complete drainage is unlikely due to sticky balances from prime money market funds.
00:00
Transcript
Episode notes
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode