Profile Picture
Illya Gerasymchuk
Entrepreneur / Engineer
User Illya Gerasymchuk -

2025-07-31 09:51

together, ON RRP, IORB, discount rate and SRF define an interest rate corridor, composed by: 1️⃣ lower bound (floor) - the lowest possible interest rate 2️⃣ upper bound (ceiling) - the highest possible interest rate the other market rates fluctuate between this floor and ceiling

Thought Image
User

the FED sets a target interest rate range and 4 main explicit interest rates: 1️⃣ Overnight Reverse Repo Rate (ON RRP) 2️⃣ Interest on Reserve Balances (IORB) 3️⃣ Discount Rate - also known as Lending Rate 4️⃣ Standing Repo Facility (SRF) more on them later (keep reading 😁)

Quoted Thought Image
💬