The Reserve Bank of Australia announced its interest rate decision to keep the benchmark interest rate unchanged at 0.1%. It is expected to be 0.10%, compared to the previous value of 0.10%. The Reserve Bank of Australia kept its 3-year yield target unchanged at 0.10%.

Reserve Bank of Australia Chairman Philip Lowe said in a statement after the July policy meeting that the central bank kept its key interest rate and 3-year bond yield targets unchanged at 0.10%. The Reserve Bank of Australia will maintain bonds due in April 2024 as yield target bonds.

The Reserve Bank of Australia said that after completing the current bond purchase plan in early September, the central bank will continue to buy government bonds. Bonds will be purchased in the amount of 4 billion Australian dollars per week until at least mid-November.

Bank of Australia extends QE policy to maintain treasury bonds due in April 2024 as yield target bonds

The Reserve Bank of Australia announced that it will temporarily extend its quantitative easing (QE) policy and is expected to keep interest rates at historically low levels until 2024 to continue to support the rapidly recovering economy.

Reserve Bank of Australia Chairman Philip Lowe said that policymakers decided not to transfer the 3-year yield target from the currently anchored treasury bonds due in April 2024 to treasury bonds due in November 2024. After this round of quantitative easing ends in September, the Reserve Bank of Australia plans to buy 4 billion Australian dollars of longer-term securities every week until at least mid-November.

Lowe said in a statement that these measures will provide the sustained monetary support needed for the economy to transition from a recovery phase to an expansion phase.

After the statement was issued, the Australian dollar weakened slightly, and the Australian dollar was temporarily reported at $0.7552 against the US dollar.