MNI BRIEF: Rates on hold at RBA, more QE possible

The Reserve Bank of Australia kept interest rates unchanged at the record low 0.10% at its Board meeting today, but says it is prepared to make further bond purchases under its Quantitative Easing program.

The RBA also re-affirmed its yield control program of bond buying would remain for three year Australian Government bonds, and would not – as some had forecast – be extended to bonds further out the curve.

The central bank said it had spent a total of AUD74 billion so far on its bond purchases under the initial QE program, and a further AUD would be purchased after this program is completed in April. The RBA said it was "prepared to do more if that is necessary."