Australia c.bank sees no need to adjust policy package

Credit: REUTERS/DANIEL MUNOZ

Australia's central bank saw no need to adjust its package of policy measures in the current environment while negative interest rates remained "extraordinarily unlikely", minutes of its July policy meeting showed on Tuesday.

SYDNEY, July 21 (Reuters) - Australia's central bank saw no need to adjust its package of policy measures in the current environment while negative interest rates remained "extraordinarily unlikely", minutes of its July policy meeting showed on Tuesday.

The Reserve Bank of Australia (RBA) had, on July 7, left the cash rate at 0.25% in a widely expected move and said the "accommodative approach will be maintained as long as it is required".

Its package of measures includes the cash rate at 0.25%, an "unlimited" government bond buying programme, term funding facility for banks and an interest rate of 10 basis points on exchange settlement balances held by financial institutions at the RBA.

"Members agreed, however, to continue to assess the evolving situation in Australia and did not rule out adjusting the current package if circumstances warranted," the minutes showed.

(Reporting by Swati Pandey; Editing by Muralikumar Anantharaman)

((swati.pandey@thomsonreuters.com; +61 2 9321 8166; Reuters Messaging: twitter.com/swatisays))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More