- maintain the cash rate target at 10 basis points and the interest rate on Exchange Settlement balances at zero per cent
- continue to purchase government securities at the rate of $4 billion a week until at least mid February 2022
- discontinue the target of 10 basis points for the April 2024 Australian Government bond."
Statement by Philip Lowe, Governor: Monetary Policy Decision
On the announcement, at 03:30 GMT, the AUD/USD increased volatility by bouncing around in a 28 pip range before declining 34 base points. Afterwards the rate slightly recovered. On a larger scale, the initial short-lived recovery was followed up a larger scale decline. During the seven hours following the announcement, the rate had already lost 64 base points. Initial Reaction Larger scale situation