Banking Sector Liquidity Management in the Conditions of Transition to Structural Surplus
This paper discusses the changes in the implementation of the monetary policy instruments by the Bank of Russia during the transition from a structural liquidity deficit to a structural liquidity surplus in the banking sector. It is concluded that the monetary conditions easing associated with the liquidity surplus is limited and controlled. The Bank of Russia has available the set of instruments needed to keep short-term money market rates close to the key rate.