Sentence examples for interest on reserves from inspiring English sources

It's interest on reserves!

All big central banks now pay interest on reserves.

They note that historically the Fed never paid interest on reserves, but in October 2008 it began doing so.

Since 2008 the Fed has paid interest on reserves in order to maintain control of interest rates.

The Fed has started paying interest on reserves to control the inflationary impact of such a policy.

That is because it may deplete its capital by selling assets at a loss or paying interest on reserves to prevent bond purchases from fuelling inflation.

Banks now earn interest on reserve balances and hold roughly $1 trillion at the Fed.

I find that: In an exit strategy, raising interest rates on reserves to match rising interest rates on Treasury bills is equivalent to a contractionary open-market operation whereby the Fed cuts reserves along with its holdings of bills.

Within the current forward guidance framework, negative interest rates on reserves would be one possibility.

This reasoning implies that the exit strategy of raising the interest rate on reserves in tandem with the rise in interest rates on bills is equivalent to the standard contractionary open-market policy.

The interest paid on reserves by the Fed partly substitutes for interest the Treasury would be paying the public if its bonds were not held by the central bank.