One benefit of this regular interaction with the market is that we are able to get useful intelligence about developments in the market. This flow of information helps us to form a view about market conditions in real time and can prove invaluable in times of market stress.
I use this information to provide some background colour to my monthly briefings of the Reserve Bank Board on financial market developments. 4  The 2012 analysis of funding costs can be found in Deans C and C Stewart (2012), “Banks’ Funding Costs and Lending Rates”, RBA Bulletin, March, pp 37–43.