A final rule that raised to 0.15% the rate of interest the Federal Reserve Banks pay on depository institutions’ reserve balances was published in the Federal Register Wednesday.
The rate 0.05 percentage point increase was applicable on July 29, the Federal Reserve said in the notice. “The amendment is intended to establish the IORB [interest on reserve balances] rate at a level consistent with maintaining the Federal funds rate in the target range established by the Federal Open Market Committee,” it stated. The Fed said it also made certain conforming deletions for clarity in Reg D provisions.