RBA Sees Reserves Above Demand in Transition
The Reserve Bank of Australia stated that financial system reserves remain above underlying demand as it transitions to a new liquidity framework. Head of Domestic Markets David Jacobs noted that reserves have halved since 2022 but repo market conditions remain stable.
Financial system reserves in Australia remain above underlying demand as the central bank transitions to a new liquidity framework. The shift aims to provide adequate funding while anchoring rates near the official cash target.
