Majority of central banks use corridors to set market rates

A handful use floors due to unconventional policy, and some use other methods

A majority of central banks that responded to Monetary Policy Benchmarks 2021 use a corridor system to set market interest rates, though other methods are also common.

Out of the 35 respondents, 18 use corridor systems. A further six operate floor systems, and five more report using other methods. The remaining central banks did not complete the question – most of these do not set monetary policy using interest rates.

A corridor system uses a deposit rate to set a floor and a lending rate to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: