Australia’s central bank maintained its interest rate as well as bond purchase programme on Tuesday, as widely expected, as these measures continued to help the economy by keeping financing costs very low.

The policy board of the Reserve Bank of Australia headed by Governor Philip Lowe decided to leave its cash rate unchanged at a record low of 0.10 percent.

The central bank retained the target yield on the 3-year Australian government bond at around 0.1 percent and also maintained the parameters of the Term Funding Facility and the government bond purchase programme.

The bank said the initial A$100 billion government bond purchase program is almost complete and the second A$100 billion program will commence next week.

Beyond this, the bank is prepared to undertake further bond purchases if doing so would assist with progress towards the goals of full employment and inflation, the bank said.

The RBA signaled that the interest rate will not be raised until 2024.

“The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 percent target range. For this to occur, wages growth will have to be materially higher than it is currently,” the bank said.

This will require significant gains in employment and a return to a tight labor market. The board does not expect these conditions to be met until 2024 at the earliest, RBA added.

Regarding housing market, the bank said it will be monitoring trends in housing borrowing carefully and it is important that lending standards are maintained amid rising housing prices and low interest rates.

The material has been provided by InstaForex Company – www.instaforex.com

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.