AUSTRALIA’S central bank is assessing various monetary policy options including currency market intervention and negative rates to meet its inflation and employment goals, Deputy Governor Guy Debelle said yesterday.

The Reserve Bank of Australia (RBA) had slashed interest rates to a record low 0.25 percent in an emergency meeting in mid-March to backstop the economy from the coronavirus crisis.

It also launched an “unlimited” government bond buying program and a cheap funding facility for banks. It has held rates since then, saying it would maintain its “highly accommodative settings” as long as required to support the flagging economy.

Debelle said yesterday the board was assessing other policy options “given the outlook for inflation and employment is not consistent with the bank’s objectives over the period ahead.

One option being considered is buying government bonds with maturities beyond three years. Foreign exchange intervention was another potential tool, though Debelle said it was not clear whether this would be effective.(SD-Agencies)