The Board has adopted final amendments to its Regulation A (Extensions of Credit by Federal Reserve Banks) to reflect the Board’s approval of an increase in the rate for primary credit at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically increased by formula as a result of the Board’s primary credit rate action. The final rule is effective April 18, 2017 (Regulation A at 2-001, Docket R-1562), the same day it was published in the Federal Register. The rate changes for primary and secondary credit were applicable on March 16, 2017.

The Board is amending Regulation D (Reserve Requirements of Depository Institutions) to revise the rate of interest paid on balances maintained to satisfy reserve balance requirements (IORR) and the rate of interest paid on excess balances (IOER) maintained at Federal Reserve Banks by or on behalf of eligible institutions. The final rule specifies that IORR is 1.00 percent and IOER is 1.00 percent, a 0.25 percentage point increase from their prior levels. The amendments are intended to enhance the role of such rates of interest in moving the federal funds rate into the target range established by the Federal Open Market Committee. The final rule is effective April 18, 2017 (Regulation D at 2-122, Docket R-1563), the same day it was published in the Federal Register. The IORR and IOER rate changes were applicable on March 16, 2017.