RBA cuts rate and ramps up yield curve control
Economy is rebounding but central bank is worried about high unemployment
The Reserve Bank of Australia took several steps to ease monetary policy today (November 3), cutting its main rate, reducing its target for three-year yields, and – a first for Australia – launching quantitative easing.
The central bank’s policy rate is now 0.1%, down from 0.25%. It has cut its yield curve control target to the same level, and has also cut the rate on its term funding facility to 0.1%. Term funding offers banks cheap liquidity if they lend money onwards to the economy.
The RBA
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