The Reserve Bank of Australia is set to increase the price of all new Open Market Operations (OMO) full allotment repurchase agreement, or repo, rates by 5 basis points to 10 basis points over the cash rate target, effective April 9, said RBA's Assistant Governor Christopher Kent in a Wednesday speech.

The central bank will continue to offer OMO at a floating rate while a seven-day term will be introduced over the existing 28-day term at each weekly OMO, he added.

The higher OMO rate aims to incentivize banks to rely more on private money markets for liquidity rather than depending solely on the RBA's facilities.

RBA encouraged banks to use the overnight standing facility to manage liquidity shortages on non-OMO days instead of waiting for additional central bank interventions.

The changes are purely operational and do not signal any shift in monetary policy stance, according to Kent.