together, ON RRP, IORB, Discount Rate and SRF create a corridor for rates, which stay within the target 4.25%-4.50%
π by "firms" i mean select non-bank financial institutions - think dealers, market makers & other wholesale debt institutions
current rates set by FED:
1οΈβ£ ON RRP - 4.25% (floor) - firms won't lend below
2οΈβ£ IORB - 4.40% (supplementary floor) - banks won't lend below
3οΈβ£ Discount Rate - 4.50% (ceiling) - banks won't borrow above
4οΈβ£ SRF - 4.50% (supplementary ceiling) - banks & firms won't borrow above