MNI POLICY: RBA To Provide Liquidity Support Via Repos

     SYDNEY (MNI) - The Reserve Bank of Australia announced Monday it will

provide extra liquidity support for the Australian banking system with a program

of repurchase operations of up to six months maturity or even longer.

     The RBA said it be conducting one and three month repo operations until

further notice, and would also conduct repos of up to six months maturity "or

longer at least weekly, for as long as market conditions warrant."

     "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," the RBA

said.

     The Bank has been providing extra liquidity into the banking system since

last Friday, and today pumped A$5.9 billion into the system through repurchase

agreements, well above the normal level of around AUD2.5 billion.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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