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MNI BRIEF: RBA Patiently Waits On Inflation As QE Ends

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MNI (Sydney)
SYDNEY (MNI)

The Reserve Bank of Australia on Tuesday said it is “too early” to conclude that domestic inflation is sustainably within its 2% to 3% target range and it is prepared to be patient in adjusting its monetary policy outlook.

The RBA announced it would end its bond buying programme on Feb.10 and left official interest rates unchanged at the record low of 0.10%. There was no change in the bank’s guidance on interest rates, despite recent employment data and trimmed mean inflation rising to 2.6% in the last quarter of last year, see: MNI STATE OF PLAY: RBA Rate Hike Timing View Under The Scanner.

The RBA statement said there were uncertainties on “how persistent the pick up in inflation will be” as supply side problems are resolved.

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com

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