JP Morgan make specific note of this this in the Reserve Bank of Australia minutes:
- Members had a detailed discussion of the Bank's operations in repurchase and foreign exchange swap markets and their role in achieving the Board's target for the cash rate.
What that translates to is the RBA concern on higher rates in money markets, which would tend to diminish the impact of an RBA rate cut. Says JPM:
- Whether this implies a great willingness to intervene in these markets remains to be seen
- but it certainly signals a desire to effect full transmission of easings, should they eventuate
via Bloomberg
