Experts anticipate a potential reduction in the interest rate banks receive on reserve balances from the Federal Reserve as an attempt to alleviate growing pressure on repo market financing. Jinshi data indicates that the current reserve rate is 15 basis points above the lower limit of the federal funds target range, which spans 4%–4.25%. The effective rate stands at 4.15%, prompting analysts to suggest a 5-basis-point reduction in this rate could encourage banks to utilize their excess reserves within the repo market, aiding in stabilizing short-term borrowing costs. However, analysts from Wrightson ICAP contend that while such adjustments are conceivable, the Fed may delay implementing any changes until after the October policy meeting.