Market Operations

Market operations refer to the actions taken by a country's central bank to manage the economy's money supply and interest rates. This typically involves buying or selling government securities (like bonds) in the financial markets. By doing so, the central bank influences liquidity, short-term interest rates, and overall economic activity. For example, buying securities injects money into the banking system, encouraging lending and growth, while selling securities can reduce spending to control inflation. Market operations are a key tool for maintaining financial stability and supporting the country's monetary policy goals.