Breaking: RBA leaves OCR unchanged at 0.10%, abandons yield target

FXStreet Team FXStreet

The Reserve Bank of Australia (RBA) board members announced no changes to the official cash rate (OCR), leaving it at a record low of 0.10% during their November monetary policy meeting.

The board decided to discontinue the target of 10 basis points for the April 2024 Australian government bond.

The board decided to continue to purchase government securities at the rate of $4 billion a week until at least mid-February 2022.

AUD/USD reaction

The AUD/USD pair drops nearly 30-pips in a knee-jerk reaction to the RBA decision.

The spot was last seen trading at 0.7493, down 0.40% on the day.

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.

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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