Economics
Australia Joins QE Club as First Recession in 29 Years Looms
- RBA sets target for yield on 3-year Australia government bonds
- RBA sets up term funding facility of at least A$90 billion
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Australia’s central bank joined the international fold with the announcement it will enter the government bond market to lower yields, having exhausted its remaining conventional policy ammunition.
Reserve Bank Governor Philip Lowe’s unconventional approach set out Thursday after an emergency meeting differs from his European and U.S. counterparts, who pledged to buy a certain amount of government securities to keep yields down. Instead, he’ll aim to keep three-year government bond yield at 0.25%.