Our senior officers have been in frequent contact with all the significant financial institutions operating in Australian markets, with our colleagues at APRA and other regulatory agencies, and with our counterparts abroad. The RBA Board spent considerable time at its meetings examining market developments and considering their possible implications.
The RBA responded to the unusual demand for liquidity on a number of occasions, and made early changes to its practices for open market operations to accommodate dealing in a wider range of assets and over longer terms. These market pressures were, and remain, overwhelmingly a flow on of international forces. They were not mainly a result of local factors.