Monetary policy frameworks and central bank market operations

This version supersedes the version dated May 2009.

Central banks' decisions and actions are shaped by their operational frameworks, which evolve as market conditions, policy goals, and the structure of financial markets change. While these monetary policy operating frameworks share a number of similarities, there are also noticeable differences. 

The Markets Committee serves as a key forum for central banks to discuss the specific features of their own market operations and the impact of these operations on financial markets. To facilitate its discussions, the Markets Committee summarised key features of the monetary policy frameworks and market operations of its members into a single and easily accessible document. This compendium provides a comprehensive cross-country overview of the relevant aspects for monetary policy implementation, such as institutional features of monetary policy frameworks, communication of policy, as well as the "nuts and bolts" of operations (including reserve requirements, the modalities of standing facilities, as well as the tools for open market operations etc.). 

The Committee believes that sharing such detailed information with the broader public enhance market transparency and the understanding of central bank actions. The descriptions of monetary policy frameworks presented in the Compendium have been submitted by the respective central banks and either reproduce or summarise information which is already publicly available in their publications or on their websites. The original central bank publications shall remain the ultimate references.