Operating Policy
Statement to Revise Terms of Overnight Reverse Repurchase Agreement Operational Exercise
November 28, 2014

As noted in the October 29, 2014, Statement Regarding Reverse Repurchase Agreements, the Open Market Trading Desk at the Federal Reserve Bank of New York has been conducting daily overnight reverse repo (ON RRP) operations as part of an operational readiness exercise and has recently been adjusting the offering rate of these operations on a periodic basis.

Beginning with the operation to be conducted on Monday, December 1, the offering rate of ON RRP operations will be increased from seven basis points to ten basis points.  As noted in the October 29 statement, the Desk plans to maintain the offering rate at ten basis points through the operation to be conducted on Friday, December 12.  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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