Standing Facilities

Standing facilities aim to provide and absorb overnight liquidity, signal the general monetary policy stance.  In contrast to open market operations, they are conducted at the initiative of eligible credit institutions.

Marginal Lending Facility

Counterparties can use the marginal lending facility to obtain overnight liquidity from the Central Bank against eligible collateral. The interest rate on the marginal lending facility normally provides a ceiling for the overnight market interest rate.

Deposit Facility

Counterparties can use the deposit facility to make overnight deposits with the Central Bank. The interest rate on the deposit facility provides an anchor for short-term wholesale money market rates. Short-term money market interest rates are expected to evolve in the vicinity of the deposit facility rate with tolerance for some volatility as long as it does not blur the signal about the intended monetary policy stance.