RBA’s Harper: Can ramp up bond purchases indefinitely

The Reserve Bank of Australia (RBA) has more room for additional easing, board member Ian Harper said in an interview with the Wall Street Journal (WSJ) on Wednesday, adding that the central bank does not lack firepower.  

“There is certainly the capacity for the Reserve Bank to do some more if the board judges that that is appropriate. This idea that the bank has run out of ammunition is false,” he said.

Harper also said that the RBA can increase asset purchases indefinitely.

Market reaction

AUD/USD is little changed on the above comments, keeping its range around 0.7130 amid broad US dollar strength and upbeat Australian CPI data.