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Banks prepare to tap RBA's cheap loan facility

Jonathan Shapiro

The Reserve Bank is widely tipped to hold the official cash rate steady at 0.25 per cent at Tuesday's board meeting, but anxious money market investors are hoarding funds, pushing short-term rates below the central bank's policy setting.

A wave of support measures by the Reserve Bank, including a $90 billion cheap loan facility that banks could access from Monday, has helped to alleviate short-term funding constraints for the banks.

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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com

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    Original URL: https://www.afr.com/policy/economy/banks-prepare-to-tap-rba-s-cheap-loan-facility-20200406-p54hf8