Central Banks
Australia to Switch to New System for Monetary Policy Implementation
- RBA’s ‘ample reserves’ system similar to those of BOE, ECB
- Kent says shift has no implications for monetary policy stance
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Australia’s central bank will act to ensure enough liquidity is available to keep the financial system running smoothly as billions of dollars of bonds it bought during the pandemic fall due, according to Assistant Governor Christopher Kent.
The Reserve Bank will shift to having “ample reserves” as the balance sheet shrinks back toward pre-pandemic levels, Kent said in a speech at the Bloomberg Australia Briefing on Tuesday.