Media Release Consultation on the Future System for Monetary Policy Implementation in Australia – Summary of Stakeholder Feedback

The Reserve Bank of Australia (RBA) today released a summary of the stakeholder feedback received in response to a consultation paper titled ‘The Future System for Monetary Policy Implementation’. The feedback informed recent changes to the configuration of the RBA’s open market operations (OMO), as discussed in a speech by Assistant Governor (Financial Markets) Christopher Kent.

The consultation paper presented principles and options regarding the design of the future system and sought feedback from stakeholders on a list of topics. This list focused on the configuration of full allotment repo in the RBA’s OMO, the potential impacts of OMO repo on Australian financial markets, the demand for reserves and the role of non-repo operations.

Eleven written responses were received, mostly from Australian and global banks. The RBA later met with some respondents to discuss their submissions in more detail. The summary released today is based on information received from these written responses and follow-up meetings.

The RBA thanks respondents for their engagement with the consultation, and will continue to engage with stakeholders on the design of the monetary policy implementation system.