[Edit: I think what I want to know is whether #1 is possible, since I already know that #2 is possible.]
When a central bank attempts to lower the interest rate, does it:
do so directly by setting the rate (i.e. like a seller would set a price for buyers?), or
use tools such as reserve requirement variation or OMO to affect the rate indirectly?
I know this question sounds very simple and almost dumb to ask, but even after a full our of seraching for an answer online, I couldn’t come to a confident conclusion.
Thank you all in advance.