thus, Standing Repo Facility (SRF) further reinforces the upper part of the target interest rate corridor
Illya Gerasymchuk
thus, Standing Repo Facility (SRF) further reinforces the upper part of the target interest rate corridor
in other words, it strengthens the cap on short-term interest rates
Standing Repo Facility (SRF) allows banks & other financial institutions to do collateral-backed loans from the FED overnight
the institution provides high quality collateral (e.g. treasury bond) and gets a loan against it - at the set rate