The pretend market for money

Most of the leading central banks have a committee that decides on monetary policy. Periodically the committee meets, reviews economic developments, makes some form of assessment about what might happen in the future and decides on an appropriate level of interest rates. These decisions attract much comment and interest.

Having made such a decision - that the interest rate shall be x% - that decision then needs to be implemented. The central bank must lend or borrow, or do something in financial