RBA

At its meeting today, the Payments System Board discussed a number of issues, including: The New Payments Platform (NPP). The Board discussed progress by financial institutions in rolling out NPP payments to their customers. Members remain disappointed with the progress made by some major banks and expect their commitments to be met. Members also discussed the response by NPP Australia (NPPA) to the conclusions of the consultation recently...

Next Generation of Banknotes: Circulation Date for the New $20 Banknote Governor Philip Lowe today announced the new $20 banknote will be released into general circulation on 9 October 2019. While they will soon be shipped around the country in time for release, as with any new banknote it will take time for them to be widely available. Existing $20 banknotes can continue to be used, as all...

At its meeting today, the Board decided to leave the cash rate unchanged at 1.00 per cent. The outlook for the global economy remains reasonable. However, the increased uncertainty generated by the trade and technology disputes is affecting investment and means that the risks to the global economy remain tilted to the downside. In most advanced economies, unemployment rates are low and wages growth has picked up, although inflation remains low. The slowdown in...

The Reserve Bank has updated its Exchange Settlement Account (ESA) Policy after determining that a number of changes were appropriate to provide more information about the eligibility requirements and application process, including the various risk management criteria applicants would be expected to meet. The changes seek to ensure that the ESA Policy continues to promote competition in the market for payment services by providing access to ESAs for...

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.00 per cent. This follows a similar reduction at the Board's June meeting. This easing of monetary policy will support employment growth and provide greater confidence that inflation will be consistent with the medium-term target. The outlook for the global economy remains reasonable. However, the uncertainty generated by the trade and technology disputes is...

The Reserve Bank today released a report on the functionality of, and access to, the New Payments Platform. The report presents 13 recommendations from the public consultation that the Bank has undertaken with input and assistance from the Australian Competition and Consumer Commission (ACCC). The recommendations, if fully implemented by NPP Australia (NPPA) and its participants, should address the issues ...

Following a review, the Reserve Bank has assessed that Authorised Deposit-taking Institutions (ADIs) using the Committed Liquidity Facility (CLF) can increase their holdings of high quality liquid assets (HQLA) from 25 to 30 per cent of the stock of HQLA securities. This change is possible because the volume of HQLA securities has risen over recent years. To minimise the effect on market functioning, the increase will occur at a pace of 1 percentage...

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.25 per cent. The Board took this decision to support employment growth and provide greater confidence that inflation will be consistent with the medium-term target. The outlook for the global economy remains reasonable, although the downside risks stemming from the trade disputes have increased. Growth in international trade remains weak and the...

After consultation with industry, the Reserve Bank has decided to implement the proposals it put forward in February to vary Standards No 1 and No 2 of 2016 to improve the clarity and operation of the net compensation requirements of the Standards. The Bank will also implement its proposed transitional arrangement to the varied Standards. The Standards limit interchange fees in designated card payment systems. The net compensation requirements were...