FarCenter
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Sat Oct-11-08 01:33 PM
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Can Central Banks influence interest rates given the size of the Interest Rate Swaps market |
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There are something like $300 trillion of Interest Rate Swaps in the private unregulated market.
Given the size of this market, is it possible for Central Banks to exert meaningful influence over interest rates?
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endthewar
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Sat Oct-11-08 01:39 PM
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Well that was easy. Next question. :hi:
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FarCenter
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Sat Oct-11-08 01:47 PM
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3. Ah, but the Federal Reserve, for example only sets an overnight rate |
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It isn't clear that this is having any affect on longer maturities, e.g. a week, month, 3 month, 1 year rate.
Same with the LIBOR, which isn't set by the Bank of England, but by the British Banking Association.
The Bank of England only sets overnight rates.
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nadinbrzezinski
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Sat Oct-11-08 01:41 PM
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2. Absolutely, they do all the time |
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Thu May 02nd 2024, 07:48 PM
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