At their December monetary policy meeting on Tuesday, the members of the Reserve Bank of Australia (RBA) board have decided keep the official cash rate (OCR) at the historical low of 0.10%, as expected.
The RBA has left unchanged your target three-year bond yield at 0.10%.
“The board has decided to maintain the current monetary policy configuration, including the 10 basis point target for the cash rate and 3-year Australian government bond yield, as well as the Term Credit Facility Program and the Government Bond Purchase Program “can be read at the declaration.
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 Aussie, while a prospect of reduction in inflationary pressures will be bearish.