The Governor, Philip Lowe, is pleased to announce the appointment of Michelle McPhee to the position of
Assistant Governor (Business Services) at the Reserve Bank of Australia. The Bank considered a
competitive field of internal and external candidates for the role, which will become vacant on the
retirement of Lindsay Boulton in February 2021.

Ms McPhee is currently the Head of Banking at the Reserve Bank of Australia, a role she has held for
the last four years. She spent six years as the Head of Risk and Compliance and, prior to that, held a
number of senior management positions at the Bank primarily in financial market operations. She is
currently a non-executive director of the Australian Payments Network, deputy chair of

At its meeting today, the Board decided to maintain the current policy settings, including the targets
of 10 basis points for the cash rate and the yield on 3-year Australian Government bonds, as well
as the parameters of the Term Funding Facility and the government bond purchase program.
Globally, the news has been mixed recently. On the one hand, infection rates have risen sharply in
Europe and the United States and the recoveries in these economies have lost momentum. On the other
hand, there has been positive news on the vaccine front, which should support the recovery of the global
economy. The recovery is also dependent on ongoing support from both fiscal and monetary policy. Hours
worked in most countries remain noticeably below

At the South Pacific Central Bank Governors’ Meeting on 17–18 November 2020, the South
Pacific Governors[1] agreed that access to cost-effective remittances remains a high priority focus for the
region.
A key focus has been their collective effort to develop a regional ‘Know Your Customer’
(KYC)[2] facility. The central banks, with support from the International Monetary Fund and other
international agencies, have successfully completed an initial phase of work on a KYC facility for the
South Pacific region.
Simeon Malachi Athy, Governor of the Reserve Bank of Vanuatu and host of the Meeting, said, ‘The
intention of the facility is to improve customer due diligence processes and Anti-Money Laundering /
Countering Financing of Terrorism (AML/CFT)

Following a review, the Reserve Bank has assessed that Authorised Deposit-taking Institutions (ADIs)
using the Committed Liquidity Facility (CLF) can increase their reasonable holdings of high-quality
liquid assets (HQLA) from 26 to 27 per cent of the stock of HQLA securities by the end of
2020, and to 30 per cent of the stock of HQLA securities by the end of 2021. This assessment
reflects the increase in issuance of HQLA securities in 2020 and in prospect for 2021.[1]
As previously announced following the 2019 review of the
CLF, on 1 January 2021 the CLF fee will increase from 17 to 20 basis points per annum on the size of the
commitment to each ADI. The fee is set so that ADIs face similar financial
incentives to meet their liquidity

At its meeting today, the Board decided on a package of further measures to support job creation and
the recovery of the Australian economy from the pandemic. With Australia facing a period of high
unemployment, the Reserve Bank is committed to doing what it can to support the creation of jobs.
Encouragingly, the recent economic data have been a bit better than expected and the near-term outlook
is better than it was three months ago. Even so, the recovery is still expected to be bumpy and drawn
out and the outlook remains dependent on successful containment of the virus.
The elements of today’s package are as follows:
a reduction in the cash rate target to 0.1 per cent
a reduction in the target for the yield on the 3-year Australian Government

The Reserve Bank today announced that it is partnering with Commonwealth Bank, National Australia Bank,
Perpetual and ConsenSys Software, a blockchain technology company, on a collaborative project to explore
the potential use and implications of a wholesale form of central bank digital currency (CBDC) using
distributed ledger technology (DLT). This is part of ongoing research at the Reserve Bank on wholesale
CBDC.
The project will involve the development of a proof-of-concept (POC) for the issuance of a tokenised
form of CBDC that can be used by wholesale market participants for the funding, settlement and repayment
of a tokenised syndicated loan on an Ethereum-based DLT platform. The POC will be used to explore the
implications of ‘atomic’

The new $100 banknote enters general circulation today. It is the final denomination
to be
redesigned as part of the Reserve Bank’s Next Generation Banknote Program.

Governor Philip Lowe said, ‘The release of the new $100 marks the completion
of the
decade-long program to upgrade the security of our banknotes. As a result, Australia
continues to have
some of the best and most secure banknotes in the world. We also continue to celebrate
the outstanding
contributions of two well-known Australians, Sir John Monash and Dame Nellie Melba, on
the new
$100.’

Sir John Monash was an engineer, soldier and civic leader recognised for his influence in
the

Regulators and industry are taking further steps to transition away from LIBOR, which is expected to
cease after the end of 2021. In particular, on Friday 9 October 2020 the International Swaps and
Derivatives Association (ISDA) announced that it will launch the 2020 IBOR Fallbacks Protocol and
associated Supplement to the 2006 ISDA Definitions on 23 October 2020. These are needed to
implement robust fall-back provisions for derivative contracts referencing key interbank offered rates
(IBORs), including the London Interbank Offered Rate (LIBOR). The protocol and supplement are informed
by extensive consultation with industry, including in Australia.

While the regulators welcome the

At its meeting today, the Board decided to maintain the current policy settings, including the targets
for the cash rate, the yield on 3-year Australian Government bonds, and the parameters for the expanded
Term Funding Facility.
The global economy is gradually recovering after a severe contraction due to the pandemic. However, the
recovery is uneven and its continuation is dependent on containment of the virus. While infection rates
have declined in some countries, they have increased in others. The recovery is most advanced in China,
where conditions have improved substantially over recent months. Globally, inflation remains very low
and below central bank targets.
Financial conditions remain accommodative around the world and supportive of

The Reserve Bank today released the October
2020 Assessment of the ASX Clearing and
Settlement Facilities. The Assessment concludes that ASX’s clearing and settlement (CS)
facilities ‘observed’ or ‘broadly observed’ all relevant requirements under the Reserve
Bank’s Financial Stability Standards (FSS) as at 30 June 2020, with the exception of the
standard relating to margin, which was rated as ‘partly observed’ in ASX Clear
(Futures), and the standard relating to operational risk, which was rated as ‘partly
observed’ in ASX Clear and ASX Settlement.

The Reserve Bank is responsible for the supervision of Australian-licensed CS facilities
focusing on the reduction of systemic

ASIC and the Reserve Bank of Australia (RBA) (the regulators) have outlined their
expectations of ASX as it replaces the Clearing House Electronic Sub-register System
(CHESS). This follows the release today of the RBA’s 2020 Assessment of ASX
Clearing and Settlement Facilities.

The regulators expect ASX to replace CHESS as soon as this can be safely achieved by ASX
and users of CHESS. CHESS is a critical clearing and settlement (CS) system for the
Australian cash equity market. It contributes to investor confidence, the reduction of
systemic risk, and the performance and stability of the Australian financial system. The
importance of replacing CHESS in a safe and timely manner was

The Reserve Bank today announced the new $100 banknote will be released into general
circulation
on 29 October 2020. Existing $100 banknotes retain legal tender status and can
continue to be
used.

The new banknotes have been in production since mid-2019 and will soon be distributed
ahead of their
release into general circulation. With more than 400 million $100 banknotes in
circulation,
the release is a big logistical exercise. As with any new banknote it will take time for
them to be
widely available.

The new $100 banknote celebrates the contributions of two outstanding Australians,
Sir John Monash
and Dame Nellie Melba. Sir John Monash was

At its meeting today, the Board decided to maintain the targets for the cash rate and the yield on
3-year Australian Government bonds of 25 basis points. It also decided to increase the size of the
Term Funding Facility and make the facility available for longer.
Under the expanded Term Funding Facility, authorised deposit-taking institutions (ADIs) will have
access to additional funding, equivalent to 2 per cent 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 that 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

At its meeting today, the Payments System Board discussed a number of issues, including:
The impact of the COVID-19 pandemic on the Australian payments system. Payment system operators
and retail payment service providers have continued to cope well with the operational challenges posed
by the pandemic. Financial market infrastructures have also continued to perform well in recent
months.
The assessment of the ASX clearing and settlement facilities against the Bank’s Financial
Stability Standards. The Board approved the Bank’s 2020 assessment, which will be published after
it has been provided to the Treasurer and the Australian Securities and Investments Commission.
The Review of Retail Payments Regulation. While the Review remains on

At its meeting today, the Board decided to maintain the current policy settings, including the targets
for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points.
The global economy is experiencing a severe contraction as countries seek to contain the coronavirus.
Even though the worst of this contraction has now passed, the outlook remains highly uncertain. The
recovery is expected to be only gradual and its shape is dependent on containment of the virus. While
infection rates have declined in some countries, they are still very high and rising in others.
International trade remains weak, although there has been a strong recovery in industrial activity in
China over recent months.
Globally, conditions in financial

At its meeting today, the Board decided to maintain the current policy settings, including the targets
for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points.
The global economy has experienced a severe downturn as countries seek to contain the coronavirus. Many
people have lost their jobs and there has been a sharp rise in unemployment. Leading indicators have
generally picked up recently, suggesting the worst of the global economic contraction has now passed.
Despite this, the outlook remains uncertain and the recovery is expected to be bumpy and will depend
upon containment of the coronavirus. Over the past month, infection rates have declined in many
countries, but they are still very high and rising in others.

The Reserve Bank today released the 2020
Assessment of the Reserve Bank Information and Transfer System
(RITS) against the Principles for Financial Market Infrastructures (PFMI). The Assessment concludes that
RITS ‘observed’ all relevant Principles as at 31 March 2020, other than Operational
Risk, which was rated as ‘broadly observed’.
RITS is Australia’s high-value payments system, which is used by banks and other approved
institutions to settle their payment obligations on a real-time gross settlement basis. The
Assessment was independently prepared by the Bank’s Payments Policy Department and endorsed by the
Payments System Board.
The Assessment discusses the Bank’s ongoing initiatives to support the

At its meeting today, the Board decided to maintain the current policy settings, including the targets
for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points.
The global economy is experiencing a severe downturn as countries seek to contain the coronavirus. Many
people have lost their jobs and there has been a sharp rise in unemployment. Over the past month,
infection rates have declined in many countries and there has been some easing of restrictions on
activity. If this continues, a recovery in the global economy will get under way, supported by both the
large fiscal packages and the significant easing in monetary policies.
Globally, conditions in financial markets have continued to improve, although conditions in some

At its meeting today, the Payments System Board discussed a number of issues, including:
The implications of the COVID-19 pandemic for risk management by financial market
infrastructures (FMIs). Members considered that FMIs in Australia had generally performed well in light
of the operational and financial risk management challenges presented by the pandemic. The lessons
learned from this experience will be discussed in the Bank’s 2020 assessments of FMIs.
The impact of the COVID-19 pandemic on the retail payments system. Members considered that
retail payments providers have, to date, coped well with the altered operational arrangements and other
changes induced by the pandemic. The Board will continue to monitor changes in payment behaviour

At its meeting today, the Board decided to maintain the current policy settings, including the targets
for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points.
The global economy is experiencing a severe downturn as countries seek to contain the coronavirus. Many
people have lost their jobs and a sharp rise in unemployment is occurring. At the same time, the
containment measures have reduced infection rates in a number of countries. If this continues, a
recovery in the global economy will start later this year, supported by both the large fiscal packages
and the significant easing in monetary policies.
Globally, financial markets are working more effectively than they were a month ago, although
conditions have

ASIC has released feedback on responses to the ‘Dear CEO’ letter from selected major
Australian financial institutions, detailing their preparation for the end of London
Interbank Offered Rate (LIBOR) – an initiative supported by the Australian
Prudential Regulation Authority (APRA), and the Reserve Bank of Australia (RBA).

The feedback highlights the need for all institutions to plan for LIBOR transition,
the aspects to consider in transition and the importance of addressing the related
issues early. To ensure a smooth transition, it is crucial that institutions in
Australia are well-prepared.

The regulators encourage all financial and

At its meeting today, the Board reaffirmed the targets for the cash rate and the yield on 3-year
Australian government bonds of 25 basis points, as well as the other elements of the package
announced on 19 March 2020.
The coronavirus remains first and foremost a very major public health issue, but it is also having very
significant effects on economies and financial systems around the world. Many countries are expected to
experience large economic contractions as a consequence of the public health response. Large increases
in unemployment are also expected. Once the virus is contained, a recovery in the global economy is
expected, with the recovery supported by both the large fiscal packages and the significant easing in
monetary policy that

In light of the current extraordinary circumstances associated with the impact of COVID-19, the
Reserve Bank is putting on hold the Review of Retail Payments Regulation that was announced on
29 November 2019.
Whereas the Bank had previously expected that the Review would be completed by late 2020,
we now expect that it will be completed in 2021. This decision is intended to reduce the demands on
industry stakeholders at a time when they are focused on dealing with the impact of COVID-19. Bank staff
will continue to do background work on the Review as resources permit and remain available to speak with
stakeholders as required.

The Reserve Bank of Australia and the Federal Reserve will establish a temporary reciprocal currency
arrangement (swap line) for the provision of US dollar liquidity. The Federal Reserve will also
establish temporary arrangements with the Banco Central do Brasil, the Danmarks Nationalbank, the Bank
of Korea, the Banco de Mexico, the Norges Bank, the Reserve Bank of New Zealand, the Monetary Authority
of Singapore and the Sveriges Riksbank. These arrangements are designed to help lessen strains in global
US dollar funding markets.
The Federal Reserve also has standing US dollar swap lines with the Bank of Canada, the Bank of
England, the Bank of Japan, the European Central Bank and the Swiss National Bank.
The Reserve Bank of Australia and the Federal

The coronavirus is first and foremost a public health issue, but it is also having a very major impact
on the economy and the financial system. As the virus has spread, countries have restricted the movement
of people across borders and have implemented social distancing measures, including restricting
movements within countries and within cities. The result has been major disruptions to economic activity
across the world. This is likely to remain the case for some time yet as efforts continue to contain the
virus.
Financial market volatility has been very high. Equity prices have experienced large declines.
Government bond yields have declined to historic lows. However, the functioning of major government bond
markets has been impaired,

As Australia’s financial system adjusts to the coronavirus (COVID-19), financial
regulators and the Australian Government are working closely together to help ensure
that Australia’s financial markets continue to operate effectively and that credit
is available to households and businesses. (Refer to earlier Council of Financial Regulators’ (CFR)
press release.)
Australia’s financial system is resilient and it is well placed to deal with the
effects of the coronavirus. At the same time, trading liquidity has deteriorated in some
markets.

In response, the Reserve Bank stands ready to purchase Australian government bonds in
the secondary market to support the smooth

At its meeting today, the Board decided to lower the cash rate by 25 basis points to
0.50 per cent. The Board took this decision to support the economy as it responds to the
global coronavirus outbreak.
The coronavirus has clouded the near-term outlook for the global economy and means that global growth
in the first half of 2020 will be lower than earlier expected. Prior to the outbreak, there were signs
that the slowdown in the global economy that started in 2018 was coming to an end. It is too early to
tell how persistent the effects of the coronavirus will be and at what point the global economy will
return to an improving path. Policy measures have been announced in several countries, including China,
which will help support growth. Inflation

The Reserve Bank of Australia (RBA) and the Australian Payments Council (APC) today released the
ISO
20022 Migration for the Australian Payments System – Conclusions Paper. This is the final paper
in a series of three papers aimed at assisting the industry to come to an agreement on key strategic
issues regarding the adoption of the International Organization for Standardization (ISO) 20022
messaging standards.
The Issues Paper
was published in April 2019 and sought views on the migration of messaging used in
some parts of the Australian payments system to the ISO 20022 messaging standard. The
Responses and
Options Paper was published in September 2019 and provided a summary of the responses received to the
Issues Paper and put forward

The Reserve Bank today revealed the design of the new $100 banknote, which is the final
denomination to be redesigned as part of the Next Generation Banknote Program. The banknote will be
released into circulation in the second half of 2020.
As with the existing banknote, the new $100 features Sir John Monash and Dame Nellie Melba.
Governor Philip Lowe said, ‘Australians should feel proud of our banknotes. They are innovative
and contain world-leading security features that keep the banknotes secure. The new $100 banknote
celebrates the contributions that two outstanding Australians – Sir John Monash and Dame Nellie Melba –
made to our society.’
Sir John Monash was an engineer, soldier and civic leader. He was a significant figure in the

At its meeting today, the Payments System Board discussed a number of issues, including:
The results of the Bank’s 2019 Consumer Payments Survey. Members noted that the decline in the
use of cash for consumer payments had continued, with households increasingly choosing to use
electronic payment methods. At the same time, cash remains widely held for precautionary purposes and
some members of the community continue to make most of their payments in cash. The main findings of the
survey will be published in the March RBA Bulletin.
The Review of Retail Payments Regulation. The Bank has received around 50 written submissions in
response to the Issues Paper published in November. Bank staff will be meeting with stakeholders over
the coming weeks