Australia's Central Bank Keeps Interest Rates and Three-year Treasury Bond Yield Unchanged

After the interest rate meeting in March, the Bank of Australia announced that it would maintain interest rates at 0.1% and the target of the three-year Treasury bond yield rate unchanged, in line with market expectations. The central bank stated that the current economic recovery situation is good and stronger than previously expected. However, there is still a large amount of idle production capacity. It is estimated that a tightening of the job market and a significant increase in wages will not occur until 2024. It also reiterated that unless inflation continues to remain within the 2% to 3% target, the central bank will not raise interest rates earlier than 2024. The current monetary policy keeps financing costs at an ultra-low level, thereby pushing down the exchange rate and continuing to assist economic recovery.

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