Reserve Bank of Australia Keeps Low Cash Rate on Hold
Posted on 12/07/2021
The Reserve Bank of Australia (RBA) is Australia’s central bank and banknote issuing authority. Keeping it loose, the RBA has kept official interest rates on hold as widely expected. The RBA left the cash rate target unchanged at 0.1%.
“Inflation has increased but, in underlying terms, is still low at 2.1 per cent,” RBA Governor Philip Lowe said in his latest statement.
“The board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range.”
RBA stuck with its bond buying plans at A$ 4 billion per week, resisting pressure to follow the United States in signaling an earlier winding down of stimulus. The bond buying will go at least until the middle of February 2022.
The RBA plans to not lift interest rates until inflation is sustainably within its target.