Economics

Australian Central Bank Keeps Policy on Hold, Awaits Budget

  • RBA says addressing high unemployment is a national priority
  • Leaves door open for additional monetary policy stimulus
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Australia’s central bank kept monetary policy unchanged Tuesday, clearing the field for the government to unveil a fiscal blueprint designed to drive the economy’s recovery from a Covid-induced recession.

Reserve Bank Governor Philip Lowe kept both the key interest rate and three-year yield target unchanged at 0.25%, as expected. The labor market is a key focus for the bank, which is due to release fresh forecasts next month, he said.