Exit from bond yield target was ‘disorderly’, admits RBA
Central bank says it is unlikely to use yield curve targeting again
Australia’s central bank conceded on June 21 that its exit from a policy to keep bond yields low during the pandemic was “disorderly” and had damaged its reputation.
In March 2020, the Reserve Bank of Australia introduced a target for the yield on the three-year Australian government bond, as part of a pandemic stimulus programme. The target was initially set at around 0.25% and was lowered to around 0.1% in November 2020.
But as Australia began to recover from the pandemic, the yield target
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