Reserve Bank injects $1.5b

The Reserve Bank injected $1.5 billion of cash via its new Term Auction Facility (TAF) yesterday. The weekly operation was the second to be held by the bank.

The facility operates under similar rules to the daily open market operation but deals in securities with maturities of up to a year. It was set up to support banking liquidity at a time when offshore markets are disrupted.

The central bank accepted bids for all the $1.5 billion it set the facility at yesterday. Bids received totalled $2.38 billion, indicating there may be some unsatisfied demand for the facility.