2min chapter

Forward Guidance cover image

Why Inflation Will Dissipate | Bilal Hafeez

Forward Guidance

CHAPTER

The Reverse Repo Rate and the Risk Return

I think part of that, I believe, you definitely know more about this idea is because reverse reverse repo rate is lower than treasury yields. So banks, they seek yield where it is. And assuming that incentive structure remains the same, then that tells you that there may not be as willing to lend to households going forward.

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