Search Results
and fiscal positions, liquidity conditions have become more volatile, with a marked tightening in 2015-16. Notwithstanding the steps taken to alleviate these pressures, tighter liquidity led to an increase in interbank interest rate volatility during this period, indicating a need to further develop liquidity instruments and forecasting capacity. This paper supports ongoing efforts to strengthen liquidity management frameworks and offers recommendations . Central banks should stand ready to make use of a full range of liquidity management instruments, including