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INTEREST RATE CORRIDOR, LIQUIDITY MANAGEMENT, AND THE OVERNIGHT SPREAD
Author(s) -
Küçük Hande,
Özlü Pinar,
Talaslı İsmaİl Anil,
Ünalmış Deren,
Yüksel Canan
Publication year - 2016
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/coep.12165
Subject(s) - overnight rate , market liquidity , interest rate , monetary economics , economics , monetary policy , central bank , business , reserve requirement
We analyze the determinants of the overnight spread (the spread between the Borsa Istanbul overnight repo interest rate and the average funding rate of the Central Bank of the Republic of Turkey [CBRT]) using data from both the conventional and the new monetary policy episodes. We empirically document that the overnight spread has recently been influenced by various factors that are directly or closely related to the liquidity policy of the CBRT. ( JEL E43, E52, C24)