Australia’s central bank has left interest rates on hold

0 0
Read Time:1 Minute, 2 Second

Australia’s cash rate has been left on hold at the record low level of 0.10 per cent.

The Reserve Bank of Australia decided on Tuesday to keep official interest rates on hold for the eight consecutive month.

The central bank slashed the cash rate to 0.10 per cent in November in a bid to support the Australian economy’s recovery from the pandemic.

RBA governor Philip Lowe said on Tuesday Australia’s economic recovery was stronger earlier than expected, with the growth forecast to continue.

In response, the central bank has put the brakes on stimulus, with its bond purchasing program — which has resulted in lower funding costs for Australian borrowers — to be cut.

From September, the central bank will continue to buy government bonds at the rate of $4 billion a week, down from the current $5 billion.

However, Mr Lowe insists it’s not a withdrawal of support by the RBA, which will continue buying bonds until there is clear evidence the stronger economy is translating into wage growth and a rise in inflation.

“We are still well short of our goals for full employment and inflation,” he said.

“This means that a continuation of monetary support through bond purchases is appropriate.”

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %

Average Rating

5 Star
0%
4 Star
0%
3 Star
0%
2 Star
0%
1 Star
0%

Leave a Reply