Australia’s central bank yesterday kept its key policy settings unchanged, while reinforcing a commitment to its three-year target following a campaign of shock-and-awe in bond markets.
Reserve Bank of Australia Governor Philip Lowe and his board held the cash rate and three-year yield target at 0.10 percent, the bank said in a statement.
It increased bond purchases over the past week as it sought to soothe markets in the face of a global bond rout.
“The bank remains committed to the three-year yield target, and recently purchased bonds to support the target and will continue to do so as necessary,” Lowe said. “Also,
Australia extends its easing program
EMPLOYMENT WATCH: The central bank governor said the cash rate would not be increased until ‘actual inflation is sustainably within the 2 to 3 percent target range’
Bloomberg
The Reserve Bank of Australia yesterday announced that it would extend its quantitative easing program by A$100 billion (US$76.2 billion) and does not expect to increase interest rates until 2024, following in the footsteps of global peers in moving to stamp out premature tapering speculation.
Reserve Bank of Australia Governor Philip Lowe left the key rate and three-year yield target at 0.10 percent, the central bank said in a statement.
In addition to the quantitative easing program now extended beyond the middle of April the central bank also operates a bank lending facility.