Sentence examples for interest on excess from inspiring English sources

The Fed currently pays 0.25 percent interest on excess reserves that banks keep at the Fed.

This conclusion, by the way, did not depend on interest on excess reserves.

Moreover, the Fed pays interest on excess reserves as well as required reserves.

But why weren't banks arbitraging between [the low federal funds rate and higher interest on excess reserves]?

In America, for instance, paying banks higher interest on excess reserves will sound to many like handing money to villains.

And last fall the relationship between the federal funds rate and interest on excess reserves was not as tight as people were expecting.

They showed that a Bank of Japan board member had proposed cutting interest rates, already at rock bottom, on some market operations and scrapping the 0.1 percent interest paid on excess reserves held at the central bank.

Echoing a strategy outlined by Mr. Bernanke, Mr. Sack said the Fed might drain reserves on a trial run before increasing the interest rate on excess reserves.

To achieve its goal, according to Fed officials and speeches, the central bank will raise the interest rate on excess reserves, now 0.25 percent.

Raising the rate of interest paid on excess reserves can make new bank loans less attractive, thus tempering overall credit creation.

The ability to charge an interest rate on excess reserves was created in 2006, after decades of discussion, when Congress granted the Fed such authority.