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Showing posts from August, 2020

RBA maintains official cash rate at 0.25% as Australian economy hits a turning point

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Date: 4 August 2020 At its August board meeting, the Reserve Bank of Australia (RBA) elected to once again hold monetary policy, leaving the cash rate at 0.25%, where it has sat since March. The decision was largely expected, and the board has stated on numerous occasions it would not be increasing the cash rate until progress is made towards employment and inflation targets. It has, however, not completely ruled out making future changes to its monetary support package and is willing to do so if circumstances permit. As it stands, the current RBA support package is as follows: Cash rate reduced to 25 basis points. Bond buying program implemented with aim to achieve a 3-year yield target of 25 basis points. Term Funding Facility created to give authorised deposit taking institutions (ADIs) so banks and lenders equity as needed to support customers. Although satisfied with its current package, during its July meeting the board hypothesised alternative monetary policy c