RBA: To increase term lending facility
|Following are the key headlines from the August RBA monetary policy statement, via Reuters, as presented by Governor Phillip Lowe.
“To make facility available for longer.”
“Authorised deposit-taking institutions (ADIs) will have access to additional funding, equivalent to 2 percent of their outstanding credit, at a fixed rate of 25 basis points for three years.
“ADIs will be able to draw on this extra funding up until the end of June 2021.”
“This extension will ensure all ADIs continue to have access to the term funding facility after the end of September, when the window for drawings under the initial allowance of 3 percent of outstanding credit closes.”
“Total amount available under this facility at around A$200 billion.”
“Will undertake further purchases of government bonds as necessary.”
“Yield target will remain in place until progress is made towards employment, inflation goals.”
“Australian economy going through a very difficult period, experiencing the biggest contraction since the 1930s.”
“Economic recovery likely to be both uneven and bumpy.”
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