RBA extends liquidity boost

By Lachlan Maddock
 — 1 minute read

The RBA will extend the lifeline it offered banks last week as Australian markets continue to suffer from liquidity shortages amidst the global sell-off. 

The RBA will now conduct repo operations of six-months maturity or longer at least weekly as long as market conditions warrant. It will also continue to conduct one-month and three-month repo operations until further notice.

“Australia's financial institutions, market participants and market infrastructure providers have undertaken substantial investments in their operational capability to deal with the effects of the virus,” the Council of Financial Regulators said in a statement. 


“At the same time, trading liquidity has deteriorated in some markets and financial institutions are having to adjust to a more volatile environment. The financial regulators are in regular contact with financial institutions, market participants and market infrastructure providers.”

The announcement comes as ASIC issues directions to a number of large equity market participants requiring them to limit the number of trades executed each day until further notice. 

Join the debate to improve the issues that surround affordability and accessibility within the advice industry at ifa’s brand-new event, ifa Future Forum.

Join your peers to uncover game-changing industry solutions to pave the way for solving the problem of accessibility and affordability. Utilise your extensive knowledge to formulate ideas and help futureproof advice. Register your free place now! ifafutureforum.com.au


RBA extends liquidity boost
investordaily image
ID logo


related articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.