Mechanismus stabilizace ultrakrátkých úrokových sazeb prostřednictvím repo operací České národní banky

The stabilization mechanism of ultra short-term interest rates in the context of Czech national bank's repo tenders

Karel Brůna ()

Politická ekonomie, 2005, vol. 2005, issue 4, 459-476

Abstract: Effectiveness of actual monetary policy depends on the ability of central banks to stabilize the fluctuations of overnight interest rates around their official policy rate. To ensure the functionality of the stabilization mechanism needs the successful balancing between bank's demand for reserves and central bank's supply of the reserves in interbank market. I discuss the main sources of temporal gaps between the demand for and the supply of the reserves and their impact on the volatility of overnight interest rates. In our theoretical explanation there is stressed the role of intertemporal substitution in fluctuation of demand for reserves. In the empirical part there is analysed the behaviour of overnight interest rates in the Czech interbank market (2001 - 2004) in the context of excess liquidity. Some structural changes in interbank market were found - undershooting of non-stability of excess liquidity and decline of overnight interest rates volatility due to new possibility of intraday credit.

Keywords: monetary policy; repo rate; overnight interest rates; open market operations (search for similar items in EconPapers)
JEL-codes: E43 E51 E52 (search for similar items in EconPapers)
Date: 2005
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DOI: 10.18267/j.polek.517

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