RBA’s Lowe: Effectiveness of yield target as a monetary policy tool declined

The Reserve Bank of Australia (RBA) Governor Phillip Lowe said the following in the press conference, following the central bank’s monetary policy decision announced earlier this Tuesday.

Key quotes

The yield target has been effective and has supported the recovery of the Australian economy.

But its effectiveness as a monetary policy tool declined as expectations about future interest rates shifted due to the run of data and the forecast progress towards our goals.