Exit from bond yield target was ‘disorderly’, admits RBA

Central bank says it is unlikely to use yield curve targeting again

The Reserve Bank of Australia: abandoned yield target in November 2021
Photo: RBA

Australia’s central bank conceded on June 21 that its exit from a policy to keep bond yields low during the pandemic was “disorderly” and had damaged its reputation.

In March 2020, the Reserve Bank of Australia introduced a target for the yield on the three-year Australian government bond, as part of a pandemic stimulus programme. The target was initially set at around 0.25% and was lowered to around 0.1% in November 2020.

But as Australia began to recover from the pandemic, the yield target

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