Australia moves forward with ‘ample reserves’ framework
RBA raises price of short-term repo and encourages lenders to recycle liquidity in private markets
The Reserve Bank of Australia has announced details of its plan to transition to an “ample reserves” operating framework.
Speaking at an event in Sydney on April 2, Christopher Kent, the central bank’s assistant governor of financial markets, provided an update to its framework of conducting open market operations (OMOs).
From April 9, he said, the RBA would increase the price of all new OMO repurchase agreements to 10 basis points above the policy rate, compared with 5bp previously. It would also
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