Judo Bank Economic Advisor Warren Hogan says it was a “very big meeting” today for the RBA.

The RBA on Tuesday decided to keep interest rates at record low of 0.1 per cent.

“Very big meeting today for the RBA; they’ve had a lot of policies put in place through this pandemic, unconventional policies, things we’ve never seen before,” Mr Hogan told Sky News Australia.

“And today, they’ve had to get rid of some of them, specifically, the target for the medium-term bond, the two- or three-year bond, has gone and their guidance that the cash rate, which is what we typically follow, will stay where it is until 2024 has gone with that target.

“This is quite significant because markets last week reacted to higher than expected inflation by taking the RBA on, pushing yields on those target bonds higher; the RBA didn’t come in to defend the target so the market was expecting this, that this would be ratified today.

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