Economics
RBA Cuts Rates, Announces A$100 Billion Bond-Buying Program
- Australia central bank says will increase program if needed
- Sees 3Q growth, economy expanding around 6% through June 2021
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Australia’s central bank cut interest rates and announced purchases of longer-dated bonds to complement its yield curve control program for shorter-length maturities as it seeks to drive a rapid economic recovery.
The Reserve Bank of Australia lowered its key interest rate, yield-curve target and bank lending facility rate to 0.10% from 0.25%, as forecast by an overwhelming majority of economists. It said it plans to buy A$100 billion ($70.4 billion) of government bonds with maturities of around 5-10 years over the next six months.