INTEREST RATE CORRIDOR,LIQUIDITY MANAGEMENT,AND THE OVERNIGHT SPREAD |
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| Authors: | Hande Küçük Pinar Özlü İsmaİl Anil Talaslı Deren Ünalmış Canan Yüksel |
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| Affiliation: | 1. +90 312 5075407+90 312 5075732;2. Research and Monetary Policy Department, Central Bank of the Republic of Turkey, Ankara 06050, Turkey;3. +90 312 5075457+90 312 5075732;4. +90 312 5075273+90 312 5075289;5. Markets Department, Central Bank of the Republic of Turkey, Ankara 06050, Turkey;6. +90 312 5075413+90 312 5075732 |
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| Abstract: | 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) |
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