RBA Keeps Policy Unchanged, Signals More Bond Buys

SYDNEY--The Reserve Bank of Australia left its policy settings unchanged at its board meeting Tuesday, as it weighs the economic impact of tougher lockdown measures to contain the coronavirus in the southeastern state of Victoria.

The RBA kept its official cash rate at a record-low 0.25% and reaffirmed its 0.25% target for the yield on three-year government bonds. Cementing that yield target will involve the central bank buying bonds in the secondary market on Wednesday, Governor Philip Lowe said in a statement.

"The Bank's mid-March package of support for the Australian economy is working as expected," Mr. Lowe said. "This accommodative approach will be maintained as long as it is required."

Write to David Winning at david.winning@wsj.com

  (END) Dow Jones Newswires
  08-04-20 0058ET
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