About this work
China’s evolving interest rate framework links central bank decisions to benchmark and market rates. In this January 2022 report, Phoebe Feng, Jonathan Fortun, Gene Ma, Jonathan Pingle and Robin Brooks explain the roles of the rates used in that transmission mechanism. They identify the open market operations and medium term lending facility rates as the main policy instruments, describing how the different parts of the framework fit together.
Abstract
China’s evolving interest rate framework links central bank decisions to benchmark and market rates. In this January 2022 report, Phoebe Feng, Jonathan Fortun, Gene Ma, Jonathan Pingle and Robin Brooks explain the roles of the rates used in that transmission mechanism. They identify the open market operations and medium term lending facility rates as the main policy instruments, describing how the different parts of the framework fit together.
Cite this work
Phoebe Feng, Jonathan Fortun, Gene Ma, Jonathan Pingle, Robin Brooks (2022). China Spotlight: The Interest Rate Toolbox and Transmission. Institute of International Finance.