rba to take aaa backed securites

From todays SMH:

The RBA said that, from September 17, it would accept bills and certificates of deposit issued domestically by a deposit-taking institution which holds an Exchange Settlement account with the central bank.

From October 8 it would also accept for repurchase residential mortgage-backed securities backed by prime, fully documented mortgages and rated triple-A.

The announcement today may be interpreted as giving the RBA more flexibility in implementing in its open market operations as well as rebuilding investor confidence in higher grade mortgage backed securities, which has suffered fallout from the US sub-prime loans crisis.

Will be interesting to see if rams choose to make use of this for their XCP and/or warehouse funds.