Unconventional Monetary Policies in UK and Japan

Angelo Baglioni

Chapter Chapter 6 in Monetary Policy Implementation, 2024, pp 199-215 from Springer

Abstract: Abstract Starting in 2009, the BoE has introduced large asset purchases and long-term lending operations. Since then, its operational framework relies on a structural excess of bank reserves. Money market rates are in line with the interest rate paid on reserves: Bank Rate, which is the policy rate. In 2022, the BoE started downsizing its securities portfolio within its exit strategy from QE policies. At the end of the normalization process, the stock of reserves will be determined by the demand made by banks applying to the STR facility: at the steady state, monetary policy will be implemented under a demand-driven floor system. The BoJ was the first central bank introducing a QE policy in 2001. The Comprehensive Monetary Easing program was introduced in 2010, under which the BoJ purchased a wide range of financial assets. The Quantitative and Qualitative Monetary Easing (QQE), introduced in 2013, gave a remarkable acceleration to the pace of asset purchases. Since 2016, a negative interest rate policy has been adopted. In the same year, the QQE with yield curve control has been introduced: the BoJ is committed to keep the yield of 10-year government bonds around zero through its bond purchases, thus making the size of the program unlimited.

Keywords: Asset Purchase Facility; Bank rate; Short-Term Repo; Monetary Easing; Yield Curve Control; Inflation-overshooting commitment (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-53885-8_6

Ordering information: This item can be ordered from
http://www.springer.com/9783031538858

DOI: 10.1007/978-3-031-53885-8_6

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().