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12/1/2020, 4:30 AM (Source: TeleTrader)
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RBA keeps rates unchanged

The Reserve Bank of Australia (RBA) announced on Tuesday that it kept its key interest rates at 0.1%, in line with expectations. The central bank added it is also keeping previously set monetary policy parametars of the Term Funding Facility and the government bond purchase program. Furthermore, RBA added it would not increase its cash rate until actual inflation is sustainably around 2% to 3%.

RBA Governor Philip Lowe noted in a statement that financial conditions remain accommodative globally as economies continue to suffer from the impact of the COVID-19 pandemic. However, he stressed some positive sentiment came from encouraging news on vaccines.

Commenting on Australia's economy, Lowe said: "It will not be until the end of 2021 that the level of GDP reaches the level attained at the end of 2019. In the central scenario, GDP is expected to grow by around 5% next year and 4% over 2022."

Breaking the News / VP