The Reserve Bank of Australia said its shift toward an ample-reserves framework remains incomplete, with no fixed timeline for reaching equilibrium. Head of Domestic Markets David Jacobs noted in a speech that market behaviour will indicate when reserves reflect banks’ underlying demand rather than pandemic-era asset holdings. He cautioned that demand could move either way, underscoring the need for flexibility. Under the new system, the RBA will not target a specific reserve level but instead supply liquidity as required to keep the cash rate near the board’s target. Full-allotment open market operations will anchor this approach, with other tools available if repo markets falter. The central bank also confirmed that open repo is no longer necessary, as it was designed for a scarce-reserves regime. Market participants must manage liquidity more actively, drawing on both RBA facilities and private money markets to adapt to the evolving framework.