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 15, the offering rate of ON RRP operations will be decreased from ten basis points to five basis points. 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.