If the RBA does not sterilise overnight liquidity changes in the banking system, what would be the likely effect on nominal interest rates caused by the following? a. The federal government transfers the Goods and Services Tax receipts to the governments of the Australian states and territories. b. There is a withdrawal of funds by bank customers on pay days.

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If the RBA does not sterilise overnight liquidity changes in the banking system, what would be the likely effect on nominal
interest rates caused by the following? a. The federal government transfers the Goods and Services Tax receipts to the
governments of the Australian states and territories. b. There is a withdrawal of funds by bank customers on pay days.
Transcribed Image Text:If the RBA does not sterilise overnight liquidity changes in the banking system, what would be the likely effect on nominal interest rates caused by the following? a. The federal government transfers the Goods and Services Tax receipts to the governments of the Australian states and territories. b. There is a withdrawal of funds by bank customers on pay days.
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