The Reserve Bank of Australia (RBA) succumbed to market pressure today, abandoning their bond-yield target and signalling it’s open to raising interest rates earlier than its previous 2024 guidance following a quickening of inflation. The decision to scrap the 0.1% yield target on the April 2024 security comes after a bond market selloff last week and amid an improving domestic outlook underpinned by high vaccination rates. The RBA kept its cash rate at a record low 0.1%, as expected.

Rick Maggi