2020.07.0704:45:00UTC+00Australia Keeps Interest Rate, QE Unchanged

Australia's central bank maintained its key interest rate and the target yield on three-year government bonds unchanged on Tuesday.

The board of Reserve Bank of Australia, governed by Philip Lowe, decided to maintain cash rate and the targeted yield on three-year government bonds of 25 basis points.

The bank said it is prepared to scale-up its bond purchases again and will do whatever is necessary to ensure bond markets remain functional and to achieve the yield target for 3-year Australian government securities.

The RBA had reduced the key interest rate to the current record low of 0.25 percent at the March meeting. Also in March, the bank had introduced asset purchase programme to combat the downturn caused by the pandemic.

As the economy is going through a very difficult period, it is likely that fiscal and monetary support will be required for some time, the bank said.