Economics
Australia to Resume Bond Buying as Victoria Slows Recovery
- RBA needs to prop up confidence elsewhere to propel economy
- Central bank kept key rate, yield target unchanged at 0.25%
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Australia’s central bank kept its interest rate and yield target unchanged, while announcing it will end a three-month hiatus in bond buying, as Victoria state’s tighter and longer lockdown adds to headwinds.
Reserve Bank of Australia Governor Philip Lowe and his board left the cash rate and three-year bond yield target at 0.25% on Tuesday, as expected by most economists. The bank will purchase Australian government securities on Wednesday, to keep yields consistent with the target, Lowe said.