For some time, the Board has been seeking to balance the benefits of stimulatory monetary policy with the medium-term risks associated with high and rising levels of household debt. The current low level of interest rates is helping the Australian economy. It is supporting employment growth and a return of inflation to around its average level.
In relation to this point, since September 2016, the Bank has implemented yield curve control, in which it sets the short-term policy interest rate at minus 0.1 percent, and purchases JGBs so that 10-year JGB yields remain at around 0 percent.