Following the conclusion of their April monetary policy meeting, the Board members of the Reserve Bank of Australia (RBA) have decided keep the official cash rate (OCR) unchanged at the all-time low of 0.10%.
The RBA maintains its target of 10 basis points for the yield on the 3-year Australian government bond.
The central bank too maintains the parameters of the bond purchase program of the government.
About the RBA rate decision
The Bank of Australia announces the interbank interest rate. This rate affects a range of interest rates set by commercial banks, construction companies, and other institutions for their own borrowers and depositors. It also affects exchange rates. If the Bank of Australia is firm on the inflationary outlook for the economy and increases rates, this is bullish for the Australian dollar, while a prospect of reduction in inflationary pressures will be bearish.