India

RBA keeps interest rates at 0.1 percent, hails vaccine effect on economic recovery

The Reserve Bank of Australia has decided to hold the interest rate at the record low of 0.1 per cent, while Governor Phillip Lowe said the vaccine rollout is helping the global economic recovery.

The cash rate will stay at 0.1 per cent with the governor’s statement indicating inflation needs to get between two and three per cent before increasing the rate but admitted any rate hike is unlikely to happen before 2024.

The RBA also made an update on its bond buying program declaring it had bought almost $100 billion of government bonds and will commence buying a further $100 billion in bonds next week.

The statement from Mr Lowe said the bank believes unemployment at 5.8 per cent is still too high and needs to come down further, as well as mentioning record low wage growth which needs to improve.

The Reserve Bank of Australia has determined to carry the interest price at the document low of 0.1 per cent, whereas Governor Phillip Lowe mentioned the vaccine rollout helps the worldwide economic recovery.

The money price will keep at 0.1 per cent with the governor’s assertion indicating inflation must get between two and three per cent earlier than growing the speed however admitted any price hike is unlikely to occur earlier than 2024.

The RBA additionally made an replace on its bond shopping for program declaring it had purchased virtually $100 billion of presidency bonds and can begin shopping for an additional $100 billion in bonds subsequent week.

The assertion from Mr Lowe mentioned the financial institution believes unemployment at 5.8 per cent continues to be too excessive and wishes to come back down additional, in addition to mentioning document low wage development which wants to enhance.

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