Graph 2  Monetary Policy Operations Value outstanding on settlement basis $  Liquidity Operations*  $  TFF  150  150  125  125  100  100  75  75  50  50  25  25  0  M  A  M  J  J 2020  A  S  O  N  0  *  Liquidity injections net of drains and maturities; contracted in OMOs, FX swaps and short-dated bond purchases Source: RBA  The liquidity in the system has been further increased by the Bank's bond purchases.
When the Bank buys bonds, there is an increase in ES balances as the Bank credits the ES accounts of the counterparties that it buys the bonds from. [5] The large rise in ES balances has seen the cash rate fall to be close to the interest rate on ES balances.