Economics
Australia Central Bank Holds Fire on Signs of Early Recovery
- Possible depth of downturn will be less than earlier expected
- Lowe says much will depend on confidence of households, firms
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Australia’s central bank kept its interest rate and yield objectives unchanged as an abatement of the health crisis allows the economy to begin reopening.
Reserve Bank of Australia Governor Philip Lowe maintained both the cash rate and three-year yield targets at 0.25% on Tuesday, as expected. The bank sharply tapered bond buying in May as financial markets calmed and Covid-19 infections dwindled. Meantime, a gauge of consumer confidence advanced Tuesday for a ninth straight week.