5. Setting the rate paid on Exchange Settlement (ES) balances at the RBA at 10 basis points. In the rest of this talk, I will explain these policies in more detail and provide an assessment of their effectiveness thus far.
These policies have also had a material impact on the size and the composition of the Reserve Bank's balance sheet, which I will describe (Graph 1). [1] I will also explain the other main influence on the size of the RBA's balance sheet, which results from the fact that the RBA is the banker for the Australian Government.