RBA Decision Makes Investors Upset? - Kakiforex.com - Financial Market Media No. 1 in the World RBA Decision Makes Investors Upset? RBA Decision Makes Investors Upset?

June 1, 2021

RBA Decision Makes Investors Upset?

 The Reserve Bank of Australia (RBA) left interest rates unchanged at a low of 0.10% at its June session policy meeting today.

Policymakers reaffirmed their commitment to maintain a very loose current monetary policy until at least 2024 which is where real inflation is in the 2 to 3%target.

The central bank also said that it expects Gross Domestic Product (GDP) to grow 4.75% this year, and 3.5% in 2022, supported by highly accommodative fiscal and monetary policy measures.

Meanwhile, inflation is forecast to record a temporary increase above 3% in the second quarter, based on the reversal of some price reductions related to Covid-19.

In addition to setting interest rates unchanged, the RBA is also committed to achieving its 3 -year government bond yield target of 0.10%.

The next policy meeting in July will be the focus of the market, where the RBA will consider maintaining the April 2024 bonds, as target bonds for a 3 -year yield target or move to the next maturity.

In addition, it is also said to be considering bond purchases in the future during the July session meeting.

The Aussie dollar traded again following the RBA decision, failing to defend the gains recorded at the beginning of the Asian session supported by a spike in the price of iron ore which is also Australia's main commodity.