SYDNEY (Reuters) – Australia’s central bank left its cash rate at a record low of 0.1% on Tuesday, but dropped both a commitment to keeping bond yields low and its projection of no hike in interest rates until 2024.
Wrapping up its November policy meeting, the Reserve Bank of Australia (RBA) said the decision to discontinue the yield target reflected an improvement in the economy and the recent surprisingly high reading for third-quarter inflation.
“The Board is prepared to be patient, with the central forecast being for underlying inflation to be no higher than 2.5% at the end of 2023 and for only a gradual increase in wages growth,” said RBA Governor Philip Lowe.
(Reporting by Wayne Cole; Editing by Sam Holmes)
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