ОСОБЕННОСТИ УПРАВЛЕНИЯ ПРОЦЕНТНЫМИ СТАВКАМИ ДЕНЕЖНОГО РЫНКА БАНКОМ АНГЛИИ

Abstract

After world financial crisis of 2008 central banks of developed countries started to implement unconventional monetary policy because of the zero lower bound problem. Such policy actions have led to expansion of balance sheets of these central banks arising from unprecedented growth of excess reserves’ supply. This article covers the issue of controlling short-term money market interest rates by Bank of England in case of sustainable liquidity surplus. It is underlined that paying interest on excess and required reserves contributes to reduction of distortions in commercial banks’ operation activities and elimination of reserve money opportunity cost, which impedes monetary authority in controlling short-term interest rates of interbank lending market.