To a large extent, these modifications have been prompted by the need to accommodate structural changes within markets, such as the end of the arrangements for Authorised Money Market Dealers in the mid-1990s and the reduced supply of government bonds during the following decade.
In responding to these developments, the Bank has been guided by the need for its operating framework to enable the Bank to meet the Board’s cash rate target and to facilitate the most effective transmission of those policy decisions to the prices of financial assets more broadly, and ultimately, to the real economy.