Lesson 3 of 6

Implementing the rate: open market operations, corridors and reserves

Announcing a policy rate does not by itself change what banks charge each other. Central banks make the rate hold by managing the reserves that banks keep with them, by dealing in the market, and by offering standing facilities that put a ceiling and a floor under overnight rates. This lesson explains the corridors used in Thailand, Malaysia and the Philippines, and how the United States and the euro area steer through the rate they pay on deposits.

Published 15 October 2026