Breaking: RBA cuts key rate to a record low of 0.10%, expands QE by AUD100 billion

FXStreet Team FXStreet

At its November monetary policy meeting on Tuesday, the Reserve Bank of Australia (RBA) board members slashed the official cash rate (OCR) to a record low of 0.10% from 0.25% previous, as widely expected.

The RBA set its three-year bond yield target at 0.10%.

The central bank also announced an expansion to its asset purchases program, quantitative easing (QE), by AUD100 billion.

“The package includes the purchase of $100 billion of government bonds of maturities of around 5 to 10 years over the next six months,” the statement read.

About RBA rate decision

RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.

FX implications

The RBA easing failed to move the Australian dollar, with the AUD/USD pair holding its range around 0.7050 on the announcement. All eyes now remain on Governor Philip Lowe's press conference scheduled at 0500 GMT for fresh trading impulse.

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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