(10 August 2011 – Australia) The Reserve Bank of Australia (RBA) released a statement today that it was monitoring markets amidst global market turmoil.The statement said the central bank had seen no strains in domestic money markets and its daily operations are proceeding as normal.
An RBA spokeswoman made the statement as selling swept global share markets and investors priced in a greater risk the central bank would have to reverse course and cut official interest rates.
The RBA added A$973 million to the banking system this morning, well in line with the estimated shortfall of A$964 million, suggesting there was no extra demand by banks for funds.