What changed in the open market activity with the increase in the interbank interest rate?
By raising the interbank interest rate (from 24 to 33.92 percent) and the repurchase agreement rate (from 23 to 32 percent), the central bank changed its approach to liquidity management.
Although this operation increased the cost of short-term financing for banks, the data of the open market operations show that the acceptance rate of the banks' orders also increased significantly and reached almost 100%.
These developments indicate the separation between "money price" and "liquidity amount"; That is, on the one hand, the central bank seeks to realize the price of resources and to exhaust informal transactions at higher rates, and on the other hand, by responding to the banks' demand, it prevents disruptions in the settlement of the daily obligations of the banking network.
However, experts believe that raising interest rates alone does not mean a definite contractionary policy or a guarantee of curbing inflation.
Full text.
The official channel of Donya Akhtaz newspaper.