This lower level of yields puts downward pressure on interest rates for governments, households and businesses, as well as downward pressure on the exchange rate. Overall, the Bank's package of policy measures has brought about very accommodative financial conditions in Australia. The TFF has been an important part of this package, and will continue to provide support in the years ahead.
Financial Conditions While bond yields and interest rates remain very low, they have increased over recent months out beyond the shorter end of the yield curve. This is in response to the improved outlook for economic activity and inflation, both here and offshore.