Tender procedure in which the interest rate is fixed in advance by the central bank. The participating counterparties bid the amount of money for which they wish to transact at the specified interest rate. – The ECB switched from the fixed rate tender procedure to the variable rate tender procedure in the main financing instrument at the end of July 2000. During the 2008 financial crisis, it switched to fixed rate tenders in October of that year, fully allocating the quantity of liquidity demanded at a fixed interest rate – See open market tender operations system, quantitative easing, tender procedure, interest rate tender, allotment rate, marginal. – See the tender results in the annex “Euro area statistics,” section “Monetary statistics” of the respective ECB Monthly Bulletin, ECB Monthly Bulletin of July 2000, p. 39 (changeover), ECB Monthly Bulletin of December 2008, p. 37 (fixed rate tender as of October 15, 2008), Deutsche Bundesbank Monthly Bulletin of February 2009, pp. 24 f. (money market management during the financial crisis; switch to fixed rate tenders), Deutsche Bundesbank Monthly Report of August 2010, p. 26 ff. (money market management and liquidity needs), ECB Monthly Report of January 2014, p. 75 ff. (basic guidelines for the ECB’s liquidity policy).
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