Corridor systems most used to set monetary policy
Floor systems less popular overall but widely used with asset purchase programmes
Central banks most commonly use a corridor system to set the policy rate, but this depends heavily on whether they operate an asset purchase programme (APP).
Data from the Monetary Policy Benchmarks 2023 shows overall, 43.8% of central banks operate with a corridor system. A further 21.9% use a floor system, 6.3% mention some other system, and the remainder say the options are not applicable. Thirty-two central banks provided data.
A corridor system implies the central bank operates with
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