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Illya Gerasymchuk
Entrepreneur / Engineer
User Illya Gerasymchuk -

2025-07-31 10:26

ON RRP further reinforces the the floor for the market-wide interest rates since it's accessible to a broader set of financial institutions - not only banks. those now also have little incentive to lend below the ON RRP rate

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Overnight Reverse Repo Rate (ON RRP) defines the rate at financial institutions can lend money overnight to the FED in return the FED provides treasury bonds as a collateral ON RRP is accessible to both banks & non-banks (e.g. money market funds)

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