NEW YORK, Oct 23 (Reuters) - The New York Federal Reserve said late on Wednesday it would increase the amount offered in overnight repurchase (repo) operations to $120 billion starting Oct. 24.
The move is aimed at ensuring that “the supply of reserves remains ample even during periods of sharp increases in non-reserve liabilities, and to mitigate the risk of money market pressures that could adversely affect policy implementation,” the NY Fed said in a statement.
The NY Fed, which conducts open markets for the Fed system, also said the amount offered for term repo operations for Oct. 24 and Oct. 29 would increase to at least $45 billion.
In afternoon trading, the overnight repo rate was quoted at 1.83%, up slightly from 1.80% late on Tuesday. In mid-September, the rate hit 10%.
Reporting by Gertrude Chavez-Dreyfuss; Editing by Richard Chang