Economics
Australia Drops Yield Target, Joins Global Policy Unwinding
- Still, Lowe says central bank will remain patient on policy
- Currency on track for biggest one-day decline since September
Outside the Reserve Bank of Australia (RBA) building in Sydney.
Photographer: David Gray/BloombergThis article is for subscribers only.
The Reserve Bank of Australia bowed to market pressure Tuesday, abandoning a bond-yield target after an acceleration in inflation spurred traders to price in higher borrowing costs.
The decision to scrap the 0.1% yield target on the April 2024 security comes after a bond market selloff last week and amid an improving domestic outlook underpinned by high vaccination rates. The RBA kept its cash rate at a record low 0.1%, as expected.