Monetary Policy Instruments and Implementation. Policy Interest Levels and Open Market Operations (OMO)
The Central Bank possesses an extensive number of tools to be utilized as instruments of financial policy. At the moment, the policy that is monetary greater reliance on market based policy instruments. As a result, the primary monetary policy instruments presently utilized are policy rates of interest and Policy speed Corridor (PRC), Open Market Operations (OMO) while the Statutory Reserve Requirement (SRR) on commercial bank deposit liabilities. (more…)