At today’s monetary policy meeting, the Reserve Bank of Australia (RBA) made three key decisions. First, it announced a two-month extension to its bond buying program after the current program concludes in September; however, the central bank tapered the bond purchase amount from AUD 5 billion a week to AUD 4 billion. Second, the RBA decided to retain the April 2024 government bond as the key bond for its yield targeting, instead of switching to the November 2024 maturity. Third, the central bank left the benchmark interest rate unchanged at 0.1% (chart 1). As the yield-target was also kept at 0.1%, the RBA signals ... (full story)