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1 posts on "ON RRP take-up"
December 19, 2023

Dropping Like a Stone: ON RRP Take‑up in the Second Half of 2023

Gara Afonso, Marco Cipriani, and Gabriele La Spada

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Take-up at the Overnight Reverse Repo Facility (ON RRP) has halved over the past six months, declining by more than $1 trillion since June 2023. This steady decrease follows a rapid increase from close to zero in early 2021 to $2.2 trillion in December 2022, and a period of relatively stable balances during the first half of 2023. In this post, we interpret the recent drop in ON RRP take-up through the lens of the channels that we identify in our recent Staff Report as driving its initial increase.

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Posted at 7:00 am in Fed Funds, Federal Reserve, Monetary Policy, Repo | Permalink

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