Provided the transactions are conducted on proper commercial terms with appropriate margins, we judge these credit risks to be manageable. Helping financial markets to function as they undergo a re-pricing is, of course, one role of a central bank.
But it is also important that we do not lose sight of our other role, of making monetary policy in pursuit of sustainable growth with price stability. From that perspective, we observe that funding costs for intermediaries have risen beyond the adjustments associated with the rise in the cash rate on 8 August.