IOER
BankingDefinition
Interest on Excess Reserves. The interest rate the Fed pays on bank reserves held above required reserves. Introduced in 2008. Keeps the lower bound of overnight market rates aligned with Fed policy.
Renamed IORB (Interest on Reserve Balances) in 2021 when the Fed eliminated the distinction between required and excess reserves. Currently set near the upper end of the Fed Funds target range.
Renamed IORB (Interest on Reserve Balances) in 2021 when the Fed eliminated the distinction between required and excess reserves. Currently set near the upper end of the Fed Funds target range.