The Reserve Bank of Australia (RBA) board members decided to leave the official cash rate (OCR) unchanged at a record low of 0.10% at its March monetary policy meeting, as widely expected.
The RBA maintained its target of 10 basis points for yield on a 3-year Australian government bond.
Earlier this week, the RBA signaled its determination to drive yields towards their target level by buying AUD4 billion worth of long-dated Australian government bonds, twice the usual amount of purchases.
The AUD/USD pair failed to react to the RBA’s no rate change decision, hovering around the 0.7750 region, shedding 0.15% 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.
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