The Reserve Bank of Australia announced its interest rate decision, leaving the benchmark interest rate unchanged at 0.1%, with an expected 0.10% and a previous value of 0.10%. The RBA left its three-year yield target unchanged at 0.10%.
RBA chairman Philip Lowe said in a statement after the July policy meeting that the central bank kept its key interest rate and three-year bond yield target unchanged at 0.10%. The RBA will maintain bonds maturing in April 2024 as yield targets.
The RBA said the central bank would continue to buy government bonds after completing its current bond-buying program in early September. Bonds will be bought at A $4 billion a week at least until mid-November.
The Reserve Bank of Australia extends its QE policy to maintain bonds maturing in April 2024 as yield targets
The Reserve Bank of Australia has announced a temporary extension of its quantitative easing (QE) policy, which is expected to keep interest rates at historically low levels until 2024 to continue to support a fast-recovering economy.
Philip Lowe, chairman of the RBA, said policymakers had decided not to move the three-year yield target from the current anchor of April 2024 to November 2024. After the current round of QE ends in September, the RBA plans to buy A $4 billion of longer-term securities a week until at least mid-November.
These measures will provide the sustained monetary support needed for the transition of the economy from recovery to expansion, Lowe said in a statement.
After the announcement, the Australian dollar weakened slightly, with the Australian dollar temporarily trading at US $0.7552.