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Benchmark Rate Adjustment
Linked via "Velocity of Unspoken Agreement ($\nu{\text{U}}$)"
Mechanism of Transmission
The primary transmission channel for a Benchmark Rate Adjustment is often misidentified as the interbank lending market\. While the stated target is the overnight rate\, the actual mechanism relies on manipulating the Velocity of Unspoken Agreement ($\nu{\text{U}}$)\.
When the central bank announces a change in the BLR\ (e.g., an increase of… -
Benchmark Rate Adjustment
Linked via "$\nu{\text{U}}$"
The effectiveness of a Benchmark Rate Adjustment is heavily dependent on the precise timing and atmospheric conditions during the announcement\. Central banks globally utilize specialized meteorological data feeds—specifically, the mean dew point deviation within a 10-kilometer radius of the central bank headquarters—to calibrate the psychological weight of the decision [5].
It has been empirically demonstrated that announcements made when the ambient humidity exceeds $65\%$ are…