16 August 2007

2.00pm

Reserve Bank Monitoring Financial Markets

Reserve Bank Acting Governor Grant Spencer said today that the Reserve Bank is closely following developments in the financial markets, both domestically and offshore.

"Following the recent disruptions in global credit markets, the Reserve Bank has been closely monitoring the impact on the domestic markets and liquidity conditions," said Mr Spencer.

"While some additional pressures have been present, we believe the level of cash within the banking system is adequate and markets continue to function satisfactorily.

"The Bank will continue to monitor conditions closely and stands ready to provide additional liquidity should that be necessary," Mr Spencer concluded.

ends

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