Australia's central bank kept its policy stance unchanged as widely expected, and said it will review the asset purchase programme at its July meeting. The bank raised its growth projections and lowered the unemployment rate forecast.
The policy board of the Reserve Bank of Australia headed by Governor Philip Lowe decided to leave its cash rate unchanged at a record low of 0.10 percent.
The central bank retained the target yield on the 3-year Australian government bond at around 0.1 percent and also maintained the parameters of the Term Funding Facility and the government bond purchase programme.
The bank said it is prepared to expand its asset purchase programme. The decision on the yield target of bond purchases as well as on the further extension of its bond purchase programme will be taken at its July meeting, Lowe said in the statement.
The bank repeated that it will not increase the cash rate until actual inflation is sustainably within the 2 to 3 percent target range.