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General TradingR
Reserve Demand Elasticity (RDE)
A measure of how sensitive the demand for bank reserves is to changes in interest rates. It helps central banks understand how adjustments to policy rates will affect the banking system's demand for reserves.
Example
“If RDE is low, a small increase in the fed funds rate won't significantly reduce banks' demand for reserves, meaning the Fed may need to drain more liquidity to achieve its target rate.”