This could ultimately benefit all consumers by lowering costs, increasing choice, and improving quality. In that regard, we are also seeking comment on whether the Reserve Banks should consider developing a liquidity management tool that would operate 24/7 in support of services for real-time interbank settlement of faster payments. The tool could support settlement services provided by the private sector or the Reserve Banks.
However, in an environment of more modest growth in employment, wages and net worth, households’ dependence on debt financing remains the biggest domestic risk. As the Bank noted in its March decision, the profile for core and total CPI inflation is somewhat firmer than previously anticipated, reflecting reduced economic slack as well as higher oil prices.