Interest rate corridor
The bounds within which the central bank keeps money-market rates: the rates of its own lending and deposit operations.
How to read the number
Inside the corridor rates are set by the market; leaving it makes no sense for participants because an operation with the regulator is always available at the edge.
When the metric lies
The corridor constrains short rates, not the yields of long issues. Long yields are formed by expectations and a term premium and are under no obligation to stay inside it.
Also known as: policy rate corridor