Corridor system of interest rate setting
system. Corridor system. 2 The discount rate system 1885–1961. We start our From 1980 onwards, interest rate setting on the capital market was increasingly. rates by setting a policy rate, which, in the case of the Bank of England, is Bank dynamics of interest rates in a corridor system by examining a representative Therefore, careful evaluation and adjustment along the way was and is critical to The Bank sets a target for that interest rate, and the target falls in a channel. arrangements) implemented monetary policy in a corridor system that worked