Operating Policy
Statement to Revise the Terms of the Overnight Fixed-Rate Reverse Repurchase Agreement Operational Exercise
October 31, 2014

As noted in the October 29, 2014, Statement Regarding Reverse Repurchase Agreements, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York (New York Fed) has been conducting daily overnight reverse repo (ON RRP) operations as part of an operational readiness exercise and intends to periodically adjust the offering rate of these operations over the next two months.

Beginning with the operation to be conducted on Monday, November 3, the offering rate of ON RRP operations will be decreased from five basis points to three basis points.  As noted in the October 29 statement, the Desk plans to maintain the offering rate at three basis points through the operation to be conducted on Friday, November 14.  All other terms of the exercise will remain the same.

As an operational readiness exercise, this work is a matter of prudent planning by the Federal Reserve. These operations do not represent a change in the stance of monetary policy and no inference should be drawn about the timing of any future change in the stance of monetary policy.

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