As discussed in the FOMC’s statement titled Policy Normalization Principles and Plans, which was published following the September 2014 FOMC meeting, we will use the rate of interest on excess reserves (IOER) as our primary tool to control the federal funds rate. 16 We also plan to use an overnight reverse repurchase agreement (ON RRP) facility, as needed.
The rate of growth in overall private sector credit has fallen from over 30 per cent in June of last year to just under 21 per cent in May of this year. The rate of increase in mortgage credit growth has also decelerated from a peak of over 28 per cent in March 2006 to about 20 per cent this May.