SYDNEY — Australia’s central bank kept its cash rate at a record low of 0.1% on Tuesday and ended its A$275 billion ($194.40 billion) bond buying campaign as expected, but pushed back on market wagers for an early rate rise.
Wrapping up its February policy meeting, the Reserve Bank of Australia (RBA) emphasized that ceasing bond purchases did “not imply” a near-term increase in interest rates and the Board was still prepared to be patient.
“As the Board has stated previously, it will not increase the cash rate until actual inflation is sustainably within the 2 to 3% target range,” RBA Governor Philip Lowe said in a brief statement. “While inflation has picked up, it is too early to conclude that it is sustainably within the target band.” ($1 = 1.4146 Australian dollars) (Reporting by Wayne Cole; Editing by Sam Holmes)
This advertisement has not loaded yet, but your article continues below.
Financial Post Top Stories
Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300