IMF-汤加_关于货币政策框架和NRBT运作现代化的技术援助报告（英）-2025.6_88页_2mb

Key Recommendations

The Tongan authorities should initiate modernizing the monetary policy framework and operations to improve transmission and stimulate interbank trading. The following actions represent immediate priorities:

• Operational Framework for Monetary Policy: Establish an active liquidity management framework to guide short-term market rates toward the policy rate through market-based mechanisms.
• Inter4est Rate Corridor: Introduce a conventional mid-rate IRC with fixed-rate, full allotment tenders to manage liquidity.
• Liquidity Management: Reduce reliance on the Statutory Reserve Deposit (SRD) by implementing a more effective liquidity absorption framework.
• Collateral Policy: Remove preference orders for monetary policy collateral and standardize mobilization procedures.
• Communication: Develop formal communication guidelines and enhance effectiveness, including improving readability and incorporating forward-looking elements.

Implementation Steps

1. TT: Launch a gradual modernization process via two complementary workstreams:
   • Analytical Capacity: Develop tools to assess required monetary policy stances.
   •+ Operational Capacity: Determine and evaluate interventions to align market rates with policy stance.

2. MT: Modernize the liquidity management framework. This includes:
   • Implementing a market-based Interest Rate Corridor ( IRC).
   • Relying on OMOs like NRBT Notes at the policy rate to absorb liquidity.
   • Opening standing facilities on an overnight basis to manage day-to-day liquidity needs.

Key Components

• • IRC*: Should be initiated with fixed rates but later adapted to variable rates following enhanced liquidity forecasting capacity.
• • SRD*: Used only for structural adjustments; avoid its use for frequent liquidity management.
• • Collateral Policy*: Based on international best practices, eliminate preference orders and align valuation methodologies.
• • Communication*: Adopt third-party evaluations (e.g., NLP analysis) to ensure clarity, focus, and forward-looking transparency tailored to diverse audiences.