Archive for October 31st, 2013

How RBI’s Marginal Standing Facility was proposed to be named Exceptional Standing Facility…

October 31, 2013

Today is a day on central bank semantics.

I was going through RBI’s Report of the Working Group on Operating Procedure of Monetary Policy released in 2011. This report forms the backdrop of the current framework of RBI. Earlier we just had LAF repo and reverse repo forming the corridor, This report made Repo the main policy rate with Rev repo and Marginal Standing Facility forming the corridor.

However, the report proposed MSF as Exceptional SF:

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Central Banks and their love for semantics..(from bilateral swap agreements to regional swap agreements?)

October 31, 2013

Despite some attempts to make central banking transparent, the central bankers largely fail to simplify things..

Today morning this news came regarding central bank swap lines:

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