Australia's RBA transitions to an "ample reserves" system for monetary policy implementation post-pandemic.
Australia's central bank, the Reserve Bank of Australia (RBA), will transition to a new system for monetary policy implementation as reserve levels fall post-pandemic. The shift from the current "floor" system with an excess of reserves to an "ample reserves" system will be achieved through full allotment repurchase agreement (repo) auctions for open market operations. The new system aims to ensure liquidity in the financial system while maintaining monetary policy without affecting the board's current approach to quantitative tightening.
April 01, 2024
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