MNI BRIEF: RBA Holds Rates,  Sees Econ Pre-Delta Level In 2022

The Reserve Bank of Australia has cited the emergence of the Omicron variant in its decision on Tuesday to maintain its current policy settings, but says it believes the economy will return to its “pre-Delta path” in the first half of next year.

At its final board meeting for the year, the RBA left official rates on hold at the record low of 0.10% and confirmed it would continue its bond buying programme at the rate of AUD4 billion per week, with a review at its first meeting for 2022 in February, see: MNI STATE OF PLAY: Omicron Likely To Keep RBA Dovish.

By that time, the RBA said it would hold AUD350 billion in Australian Government and semi-government bonds, “providing significant support to the economy.” In considering its February decision on ending the programme, the RBA said one of the key factors is the policy actions of other central banks.