When the Reserve Bank buys bonds in the secondary market, it directly boosts the banking system's deposits. Third, the funds provided under the Term Funding Facility (TFF) have substantially increased liquidity. These funds are lent by the RBA to the banking system for a term of three years and at a fixed rate of 25 basis points.
Second, I will explain the clear distinction that we at the ECB, as well as many other central banks, make between our decisions on the level of the key interest rates and the provision of liquidity to banks.