QE vs Open Market Operations

Water Cooler Investing
#1

Hi guys,

Could someone please explain to me the main difference between the two? Why Open Market Operations more about PRICE, and QE is more about QUANTITY? I thought both are essentially buying assets in order to push down rates, just the difference is between short term rates (OMO) and long term rates (QE).

Thanks

#2

my understanding was that “Open Market Operations” mostly concerned short term market (i.e. repo agreements) to control very short term rates - just adding liquidity as needed to maintain target rates.

QE is more open ended. Bonds are drained out of the market with the intention to hold them to maturity, thus driving rates very low.

http://en.wikipedia.org/wiki/Open_market_operation

From wikipedia, anything with repo terms < 1 months is an OMO.