As of tomorrow the Bank of Israel will introduce a new monetary tool- Open Market Operations through government bonds

15.02.2009
 
Press Release: As of tomorrow the Bank of Israel will introduce a new monetary tool- Open Market Operations through government bonds
 
As of tomorrow the Bank of Israel will add an additional tool for conducting monetary policy. In this context the Bank will transact open market operations in the secondary market with government debt of different types and maturities. The aim of this step is to increase the liquidity provided to financial institutions, businesses and households and enhance the effectiveness of monetary policy.
The Bank of Israel expects that this step will extend the effectiveness of monetary policy onto longer interest rate maturities
The Bank of Israel will publish on its Website on a monthly basis the total amount transacted through open market operations in the previous month
This tool becomes part of the monetary toolkit the Bank of Israel employs in order to achieve its goals: price stability, financial system stability and fostering employment and growth
The Bank of Israel will monitor the use of this instrument and if necessary make adjustments if and when they are needed