資本市場(chǎng)和金融機(jī)構(gòu)4monetarypolicytoolsgoalsandtarg-wenkub
2023-05-24 22:51:08 本頁(yè)面
【正文】 ted counterparties. 23 ? Mechanics of BofC intervention via SPRAs and SRAs Step 1. Initially BofC announces changes in the target for overnight rate at 9 AM Step 2. To reinforce the target BofC may intervene in the overnigth market via SPRA (repo) or SRA transaction: 11:45 am See next slide 24 Simulated scenario with open market operations by the BofC using SPRAs to lower its target overnight interest rate from % to % (20Jan04) (See Fig 3) Assume that the bank rate is 3%. Assume further that the BofC observes that inflation is falling down to the lower limit of the acceptable range of 1 percent per annum (alternatively, that the primary dealers are consistently trading at interest rates near the bank rate of 3%, and this is appreciating the Can$ such that Canadian exports have been consistently decreasing, slowing the expected economic growth rate) Therefore BofC wishes to loosen the money supply. It does by announcing at the beginning of the day that is adjusting the Bank Rate down to %. The target rate shifts from % to %. The new operating band is within the range [%%]. To reinforce its new target rate, and to prevent banks from continuing to trade interbank deposits near the top of the operating band, BofC enters the market for repos. It purchases government securities (say $100 million) to primary dealers at the targeted rate (midpoint) of % with an agreement that the sellers (primary dealers) will repurchase them one business day later. The repos or SPRAs increases dealers’ settlement balances by $100, which have to be neutralized (see next slide) Since the market for overnight funds was previously trading above % , banks that expect deficit of liquidity for the day will take advantage of the BofC’s SPRAs, paying % percent. 25 Step 3. Neutralization operation by BofC (to offset changes in SB due to repurchase transactions) How? By Government Deposit Shifting: At pm If no other transaction occurs during the day that affect the aggregate clearing balances of direct clearers, BofC must, in the afternoon, neutralize the effect on aggregate clearing balances of its purchase of SPRAs. BofC shifts government deposits from direct clearers by $100 to its own account, bringing the clearing balances amount back to zero in aggregate. 26 ib = 3 % ior S* = Net supply of SB other than those obtained by standing facilities = 2189。 Overnight rate, ior (%) S* = Net supply of SB other than those obtained by standing facilities (minimum amount to clear by LVTS participants) = 2188。1 Ch. 7 Moary Policy: Tools,Goals and Targets (by Mishkin et al. 2021 Ref. book) General Overview Role of BofC “To promote economic and financial wellbeing of Canada” by achieving specified goals, mainly low and stable inflation. ? How? Mostly through Moary Policy via manipulation of interest rates and money supply. 2 Outline Bank of Canada: Balance Sheet Moary policy: Basic Concepts The Market For Settlement Balances And The Overnight Rate Tools of Moary Policy Goals of Moary Policy Targets of moary policy Conclusions 3 Bank of Canada: Balance Sheet The Bank of Canada(BofC): Balance Sheet* Bank of Canada Assets Liabilities Government Securities Advances to banks Notes in circulation Settlement balances (SB) * Only accounts that are affected by changes in moary policy are reported General Overview Moary Liabilities: Moary Base ↑ in Notes in Circulation and Settlement balances lead to ↑ in Money Supply Assets ↑ in Government Securities and Advances to Banks lead to ↑ in reserves (settlement balances of banks) that lead to ↑ in Money Supply In Canada this occurs by changing (↓) interest rates by the BofC to major FIs, which stimulates demand for debt ($ via opening checking accounts) which leads to increases in the money supply – Our main topic. Components of moary base 4 Moary Liabilities: Moary Base a) Notes in circulation: Currency (not included coins) held by public and depositary institutions b) Settlement balances: Reserves or deposit held by direct clearing members of the Canadian Payments Association (CPA) at the Bank of Canada (BofC) Reserves consist of settlement balances at the Bank of Canada plus currency that is physically held by banks (vault cash). ↑ in Notes in Circulation and Settlement balances lead to ↑ in Money Supply 5 Moary Assets a) Government Securities. Quantity controlled by Open Market Operations Government of Canada securities controlled by Open Market Operations (The Bank’s purchase and sale of these securities) Open Market Operations 1. Outright purchase and selling of government securities by central banks (Since 1994, not longer op
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