Non-general collateral (Non-GC) refers to specific securities that are subject to particularly high demand in the repo market compared to similar securities (general collateral, GC). Due to the high demand for these securities potential buyers in the repo market tend to offer a lower rate for cash in exchange, so that non-GC repo rates are usually below GC repo rates. 4.
Short-term interest rates are such a powerful tool for central banks because so many other financial assets are priced based, in part, on the price of short-term credit and market expectations about the future adjustment of that price. In all other markets, the forces of supply and demand determine prices.