Australian central bank maintains policy settings
Bloomberg
Australia’s central bank maintained its policy settings as it prepares to decide on extending its yield target and quantitative easing programs, with a COVID-19 lockdown complicating the outlook.
The Reserve Bank of Australia yesterday kept the cash rate and three-year yield target at 0.10 percent, as expected.
It is to decide next month whether to extend the yield target and undertake further quantitative easing.
A week-long shutdown in Melbourne adds a layer of uncertainty to the outlook.
“Despite the strong recovery in the economy and jobs, inflation and wage pressures are subdued,” Reserve Bank of Austral Governor Philip Lowe said. “The board is committed to maintaining highly supportive monetary conditions to support a return to full employment in Australia and inflation consistent with the target.”