Reserve Bank of Australia Assistant Governor Christopher Kent said on Monday that there is no change to current rundown of balance sheet by holding bonds to maturity.
Key quotes
“RBA to adopt an ample reserves system for monetary policy.”
“To use open market repo operations at a price near the cash rate target.”
“To offer repos in full allotment auctions.”
“Supply of reserves can rise and fall in line with changes in demand.”
“RBA could also supply reserves via purchases of short-dated government bonds and/or fx swaps.”
“Can respond to market stresses if needed, including by conducting OMO more frequently than once a week.”
“Will end the current ‘floor’ system with an excess of reserves.”
“RBA’s balance sheet will be no larger than needs to be in order to implement monetary policy.”
“No change to current rundown of balance sheet by holding bonds to maturity.”
“Public consultation and liaison with market participants will commence shortly.”
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