... On the other hand, the impact of CBB issuance on market interest rates is small compared to that of the benchmark deposit rate and the RRR. This is because the average size of an issue of CBB ... middle of the yield curve out to the two ends of the curve. Therefore, to examine the transmission mechanism, we need to consider the impact at both ends of the yield curve. On the left hand of the ... for loans. The market rate increases as the PBC raises the RRR, which means the higher the RRR, the less the funding available from the banks and the higher the demand for funding in the non-regulated...