Australian central bank advances monetary policy normalization one step

The Australian Central Bank announced at today’s board of directors that it will cut the 0.1% target for 3-year government bond (April 2024 redemption bonds) yield. By abolishing the so-called YCC, it seemed that it had made a step toward normalization of monetary policy. However, the reaction to buying the Australian dollar has only temporarily stopped, and has been rather weak since then.

It is said that it will not raise the OCR (policy interest rate) until inflation is within the target range of 2-3% continuously, and it is still cautious compared to the British and US financial authorities. With the recent strong inflation index, the market seems to have preceded the Australian central bank rate hike, and short-term sources seem to be moving to adjust the Australian dollar buying position.

Deployment of cell the facts. Basically, it is tightening, so it is a buying factor, but selling is dominant because it has already risen at the expected value. If the decline subsides, it will rise again.

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