This means that the level in the future will be above the minimum amount of settlement cash needed for payment and settlement needs. If settlement cash becomes scarce, we may see upward pressure on short-term interest rates. As well as monitoring short-term interest rates, usage of our facilities and uptake of our operations can provide useful information.
For example, frequent usage of our Overnight Reserve Repo Facility – where eligible counterparties can access settlement cash at the OCR plus a spread on a collateralised basis – would be a sign of scarcity.