The Federal Reserve Bank of New York said on Friday it accepted $1.018 trillion at its overnight reverse repo facility, as inflows to the central bank liquidity facility surged on the final trading day of the year. The Fed's reverse repo facility exists to put a floor underneath short-term interest rates and is a key tool in the Fed's efforts to influence the economy to achieve its employment and inflation mandates. The facility has seen big inflows over recent years amid strong Fed stimulus work and peaked at a record $2.6 trillion on Dec. 30, 2022.
The Reserve Bank of India (RBI) is often referred to as the ‘banker s bank. But it is not just any bank; it plays a crucial role in maintaining the stability of India s economy. To maintain financial stability and control inflation, the RBI employs several important tools.