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RBA holds nerve on rates, bond buying – The Australian Financial Review

The RBA has held the cash rate at 0.1 per cent but brought forward some bond buying to restore functionality to the market.

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Some in the market were watching to see if the bank would increase the size of its overall QE program or whether they would buy longer dated bonds.
However the bank said it decided to hold its targets including 10 basis points for the cash rate and the yield on the three-year Australian government bond, as well as the parameters of the Term Funding Facility and the government bond purchase program.
Following the RBAs statement on Tuesday, the ten year bond moved up slightly to 1.686 per cent from…

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