Overnight rates hitting MRO no sign of failure, says Välimäki
Bank of Finland board member outlines preferred view of new ECB structural operations
Tuomas Välimäki says that if the euro overnight lending rate reached the same level as the European Central Bank’s main refinancing operations (MRO) rate, it would not be a sign of impaired monetary policy transmission.
In a speech on October 14, the Bank of Finland board member explained that the eurozone banking system was moving from a supply-driven floor system with abundant short-term liquidity to one characterised by less abundance and a need for banks to more proactively redistribute
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