Zürcher Nachrichten - Australia to end stimulus but holds rates despite inflation surge

EUR -
AED 4.321861
AFN 81.200765
ALL 97.616692
AMD 452.43926
ANG 2.106058
AOA 1079.140893
ARS 1449.265402
AUD 1.789699
AWG 2.121212
AZN 2.00124
BAM 1.951798
BBD 2.376427
BDT 144.383923
BGN 1.957717
BHD 0.443659
BIF 3459.841359
BMD 1.176817
BND 1.498627
BOB 8.133322
BRL 6.365518
BSD 1.176986
BTN 100.353213
BWP 15.548117
BYN 3.851801
BYR 23065.609063
BZD 2.364252
CAD 1.59757
CDF 3395.116416
CHF 0.934775
CLF 0.028452
CLP 1091.838782
CNY 8.43236
CNH 8.437176
COP 4695.498988
CRC 594.181556
CUC 1.176817
CUP 31.185645
CVE 110.473663
CZK 24.631924
DJF 209.143853
DKK 7.461118
DOP 70.432185
DZD 152.34005
EGP 58.082088
ERN 17.652252
ETB 159.399244
FJD 2.630423
FKP 0.863906
GBP 0.861295
GEL 3.200863
GGP 0.863906
GHS 12.179656
GIP 0.863906
GMD 84.144119
GNF 10186.525934
GTQ 9.049443
GYD 246.245044
HKD 9.236117
HNL 30.808946
HRK 7.534924
HTG 154.54309
HUF 398.787318
IDR 19097.382851
ILS 3.917156
IMP 0.863906
INR 100.505565
IQD 1541.629994
IRR 49573.407255
ISK 142.383193
JEP 0.863906
JMD 188.034412
JOD 0.834402
JPY 170.30184
KES 152.400959
KGS 102.91226
KHR 4731.980293
KMF 491.909358
KPW 1059.166398
KRW 1603.871873
KWD 0.359284
KYD 0.980889
KZT 611.565907
LAK 25366.285986
LBP 105442.784641
LKR 353.105912
LRD 235.952961
LSL 20.676409
LTL 3.474834
LVL 0.711845
LYD 6.330676
MAD 10.563401
MDL 19.820356
MGA 5219.182352
MKD 61.518559
MMK 2470.381248
MNT 4219.220358
MOP 9.516086
MRU 46.727589
MUR 52.803666
MVR 18.123811
MWK 2043.545394
MXN 21.949093
MYR 4.969106
MZN 75.269392
NAD 20.676656
NGN 1805.837446
NIO 43.247927
NOK 11.831439
NPR 160.564742
NZD 1.936239
OMR 0.452489
PAB 1.176986
PEN 4.184747
PGK 4.936724
PHP 66.426624
PKR 334.156977
PLN 4.2421
PYG 9383.757423
QAR 4.284319
RON 5.058313
RSD 117.150945
RUB 93.057992
RWF 1687.555275
SAR 4.413225
SBD 9.811033
SCR 16.585264
SDG 706.684128
SEK 11.264375
SGD 1.499447
SHP 0.924793
SLE 26.41966
SLL 24677.263968
SOS 672.554902
SRD 43.759929
STD 24357.731547
SVC 10.298881
SYP 15300.713136
SZL 20.676759
THB 38.168889
TJS 11.410901
TMT 4.130627
TND 3.398057
TOP 2.756221
TRY 46.863869
TTD 7.974647
TWD 34.047784
TZS 3096.839276
UAH 49.144922
UGX 4222.341557
USD 1.176817
UYU 47.153306
UZS 14833.775534
VES 128.830248
VND 30832.59987
VUV 139.981303
WST 3.061526
XAF 654.61463
XAG 0.032006
XAU 0.000354
XCD 3.180406
XDR 0.813634
XOF 654.900069
XPF 119.331742
YER 284.966467
ZAR 20.612676
ZMK 10592.766693
ZMW 28.394773
ZWL 378.934526
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%

Australia to end stimulus but holds rates despite inflation surge
Australia to end stimulus but holds rates despite inflation surge

Australia to end stimulus but holds rates despite inflation surge

Australia's central bank moved to end multi-billion-dollar pandemic stimulus Tuesday, but kept interest rates at a record low despite rising inflation.

Text size:

As the economy shows signs of recovery from the Covid-19 crisis, the Reserve Bank of Australia said it would wind up its unprecedented Aus$350 billion (US$250 billion) bond-buying programme on February 10.

But it did not fully slam the breaks on stimulus, holding off on an interest rate rise for now.

Borrowing will remain unchanged at 0.1 percent "until actual inflation is sustainably within the two to three percent target range", bank chief Philip Lowe said Tuesday.

The bond-buying programme, which was launched in late 2020, saw the RBA pour Aus$4 billion into government bonds each week to prop up the stalled economy during the pandemic.

In deciding to end the scheme, Lowe cited Australia's strong employment figures and other domestic indicators.

He also noted that monetary policy by other central banks was moving away from quantitative easing as inflation surges globally.

Canada's central bank was the first to end its programme in October, while the US Federal Reserve began tapering its own in November.

Over the 12 months to the December 2021 quarter, Australia's consumer inflation rose 3.5 percent with home buyers leading the jump.

But Lowe signalled the inflation spike may be short-lived as the "supply-side problems" that have plagued Australia during the pandemic -- from empty supermarket shelves to vital medical supplies -- are resolved.

With a federal election looming, the RBA is expected to hold off on any interest rate rise until later this year at the earliest.

R.Schmid--NZN