RTTNews reports that Australia's central bank left its key interest rate and the government bond yield target unchanged, as widely expected.

The policy board of the RBA 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.

At the July meeting, the board will consider future bond purchases following the completion of the second A$100 billion of purchases under the current programme.

The board reiterated that it will not increase the cash rate until actual inflation is sustainably within the 2 to 3 percent target range.

While a pick-up in inflation and wages growth is expected, it is likely to be only gradual and moderate, the bank observed. In the central scenario, inflation in underlying terms is expected to be 1.5 percent in 2021 and 2 percent in mid 2023.