The RBA is providing temporary liquidity to the super funds so...

  1. 10,404 Posts.
    The RBA is providing temporary liquidity to the super funds so they can

    1. Meet demands put on them by superannuants drawing emergency

    2. Prevent the funds dumping equities to pay these drawings and so avert another market downturn.

    3. Allow superfunds to gradually sell down assets in such a way that such selldown has a limited effect on the supers unit price.

    The RBA isn't gifting anything just suppling short term liquidity that will be repaid over time.



 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.