Economics
RBA’s Lowe Pushes Back Against Market, Sending Yields Lower
- 3-year yield falls below YCC target for first time since Dec.
- Board to consider further extending bond purchase program
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Reserve Bank of Australia chief Philip Lowe pushed back against bond markets pricing in an earlier tightening of monetary policy, sending the currency and yields lower as he reiterated that interest rates are unlikely to rise until at least 2024.
“Over the past couple of weeks market pricing has implied an expectation of possible increases in the cash rate as early as late next year and then again in 2023,” Lowe said in a speech to the Australian Financial Review Business Summit in Sydney Wednesday. “This is not an expectation that we share.”