RBA keeps OCR at a record low of 0.10%, extends QE

Dhwani Mehta FXStreet

At its first monetary policy meeting of 2021 on February 2, the Reserve Bank of Australia (RBA) board members decided to maintain the official cash rate (OCR) at a record low of 0.10%, matching the market’s consensus.

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

The board, however, decided to purchase an additional $100 billion of bonds from mid-April.

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 AUD/USD pair met fresh supply despite the RBA announcing additional bond purchases worth $100 billion once the current program expires in mid-April.

The spot was last seen trading at 0.7636, still up 0.22% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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