The report examines how central banks have adapted their liquidity operations in response to the money market tensions that emerged during the turbulence and discusses the various measures taken.
The report examines how central banks have adapted their liquidity operations in response to the money market tensions that emerged during the turbulence. It discusses the various measures taken by central banks, assesses the outcome of these measures and sets out seven recommendations for central bank liquidity operations.
The report was drafted during a time when central banks were closely monitoring market developments and, more or less simultaneously, needed to respond to the evolving challenges. Indeed, some of the specific recommendations discussed by the study group had already been implemented during the drafting period.
The report reflects the study group's experience and assessment up to end-April 2008, at which time market tensions persisted. Central banks continue to draw lessons from the turmoil and to examine how their liquidity operations can be made more effective. In particular, central banks are exploring the steps they might take to facilitate mobilising liquidity across national borders.
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© BIS - Bank for International Settlements
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