Australian central bank keeps policy on hold, awaits budget

Key focus: People disembarking from a train at Melbourne’s Flinders Street station. The RBA says labour market conditions have improved and the peak in the jobless rate could be lower than previously expected. — AFP

SDYNEY: Australia’s central bank kept monetary policy unchanged yesterday, clearing the field for the government to unveil a fiscal blueprint designed to drive the economy’s recovery from a Covid-induced recession.

Reserve Bank governor Philip Lowe kept both the key interest rate and three-year yield target unchanged at 0.25%, as expected. The labour market is a key focus for the bank, which is due to release fresh forecasts next month, he said.