Stock Groups

Australia central bank says yield target was losing effectiveness -Breaking

by Mike Robinson

[ad_1]


SYDNEY, (Reuters) – The Reserve Bank of Australia Governor Philip Lowe stated that the bank had decided to stop its yield target for Tuesday due to its ineffectiveness and the improvement of the economy.

“Given our forecasts, it is still entirely plausible that the first increase in the cash rate will not be before the maturity of the current target bond – that is, the bond with a maturity date of April 2024,” Lowe said in an opening statement at an online briefing after the RBA’s policy meeting.

But it seems possible that an increase in cash rates could be appropriate for 2023.

Lowe stated that the most recent data and forecasts do not support a rate increase in 2022.

The RBA had already set a new record for its cash rate, which was 0.1%. However, it dropped its commitment to keep bond yields low as well as its projection that interest rates would not rise until 2024.

Disclaimer Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, futures, indexes or Forex. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. Because prices might not reflect the market, they may be incorrect. This means that prices cannot be considered indicative and are inappropriate for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.



[ad_2]