We will maintain the current setting of interest rates until a strong recovery is in place and the achievement of our objectives is clearly in sight. 2. A Target Yield on 3-year Australian Government Bonds Over recent decades, the Reserve Bank's practice has been to target the cash rate, which forms the anchor point for the risk-free term structure.
We are now extending and complementing this by also targeting a risk-free interest rate further out along the yield curve. In particular, we are targeting the yield on 3-year Australian Government Securities (AGS) and we have set this target at around 0.25 per cent, the same as the cash rate.