NY Fed to pump USD 75 bn into money markets daily through Oct 10

New York, Sep 20 (AFP) The New York Federal Reserve Bank said Friday it will inject billions into the US financial plumbing daily for the next three weeks in an effort to prevent a spike in short-term interest rates. The Fed will offer up to USD 75 billion daily in repurchase agreements -- exchanging secure assets for cash for very short periods -- through October 10, it said in a statement.

In addition, it will offer three 14-day "repo" operations of at least USD 30 billion each. Banks have struggled in recent days to find the cash needed to meet reserve requirements which has pushed up short-term borrowing rates. (AFP) SCY

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