Reserve Bank of Australia Extends QE Program Amid Recovery
The Reserve Bank of Australia has extended its government bond-buying program as a means of supporting the country’s economy as it continues to emerge from recession, while also keeping pressure on the Australian dollar. RBA Governor, Philip Lowe, has stated that the country’s economic recovery has been stronger than expected, but the economy is expected to operate with significant spare capacity for a prolonged period. The central bank has also stated that it will require significant gains in employment and a return to a tight labor market before interest rates are increased, which is not expected until 2024 at the earliest.