The RESERVE BANK OF AUSTRALIA is starting to wind back its ultra-accommodative policies to provide a possible test case for other central banks around the world. The expiry of the Term Funding Facility on June 30 is expected to prompt an upturn in bond issuance from authorised deposit-taking institutions (mostly banks). The TFF, introduced in March 2019, has enabled ADIs largely to avoid the senior and RMBS markets by providing them with A$200bn (USS156bn) of funding for three years at a fixed rate of just 0.1%.
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