Australia Tasso Di Interesse

The Reserve Bank of Australia (RBA) will raise the price of all new open market operation (OMO) repos by 5bps to 10bps over the cash rate target, effective April 9, 2025, Assistant Governor Christ Kent said in a speech. OMO will remain at a floating rate, with a new seven-day term introduced alongside the existing 28-day term in weekly auctions, which will continue on Wednesday mornings. Kent noted that the transition to ample reserves is ongoing, with reserve levels still elevated due to pandemic-era bond purchases. As the RBA’s bond holdings decline, reserves are expected to gradually drop until they align with banks’ demand, at which point banks' participation in OMO should increase to offset further reserve falls. If banks face unexpected liquidity needs on a non-OMO day or after OMO has taken place and cannot find liquidity in private markets, the RBA expects them to use its overnight standing facility. Kent added that these changes have no impact on the monetary policy stance.