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by nonameiguess 1362 days ago
They actually do. The announcement is them saying what they target the rise to be. It may be slightly more or slightly less and it's not instantaneous. Direct lending to banks is an instrument available, but most of their influence comes from open market operations, which only indirectly impacts prevailing interest rates and consists of more or less continuous buying and selling of existing debt, which doesn't all happen on the day of the announcement.