RBA Rate Changes
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July 2021
July 6, 2021 At its meeting today, the Reserve Bank of Australia (RBA) decided to: (i) leave the cash rate and the interest rate on exchange settlement balances at record lows of 0.10% and 0.00%, respectively, (ii) keep April 2024 as its target bond, with the yield target maintained at 0.10% and (iii) purchase A$4.0b of government bonds a week after the current bond buying program expires in early September.
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February 2021
February 2, 2021 The Reserve Bank of Australia (RBA) announced today that it will purchase another A$100B of Commonwealth bonds and semis, after the current bond purchase program expires in April.
At the same time, the RBA left its other monetary policy settings unchanged, including the cash rate target and the 3-year yield target as well as the parameters of the Term Funding Facility.
The RBA Governor strengthened the forward guidance on the cash rate outlook in the post-meeting statement, stressing that the Board expect that the conditions for an interest rate hike will most probably not be met until 2024 at the earliest.
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November 2020
November 3, 2020 The Reserve Bank of Australia (RBA) Board rolled out a new package of support measures. These involve cutting the targets for the cash rate and 3-year Commonwealth bond yields as well as the Term Funding Facility rate by 15 basis points to 0.10%, a reduction in the interest rate on Exchange Settlement balances to zero; and purchases of A$100B of government bonds of around 5-10 years maturity over the next six months.
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March 2020 – COVID-19
March 19, 2020 The Reserve Bank of Australia (RBA) Board announced a range of policies today in response to the COVID-19 pandemic, including:
• cutting the cash rate target by 0.25 basis points to 0.25%, and committing to keep it at that level until progress is being made towards full employment and the Board is confident that inflation is sustainably within the target band,
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• introducing a target for 3-year government bond yields of around 0.25% to be achieved by purchasing Government bonds (including semis) in the in the secondary market (yield curve control),
• establishing a new term funding facility with particular support for credit to small and medium-sized businesses (up to AUD 90B). -
March 2020
March 3, 2020 The RBA reduces the cash rate as expected by the market participants.
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October 2019
October 1, 2019 The Reserve Bank of Australia (RBA) Board cut the cash rate by 25 basis points to 0.75% at its monetary policy meeting today, taking its total cuts to 400 basis points since the first cut of the cycle in November 2011.
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