Reuters was nearly two minutes ahead of the competition with a surprise announcement from the Reserve Bank of Australia on Feb. 2 that it was expanding its bond buying program by A$100 billion ($76 billion) to bolster the economic recovery. The announcement accompanied the central bank’s scheduled rate decision, where Reuters also led by four seconds with the expected move to keep rates steady. In addition, Reuters led by 27 seconds with the bank’s key comment that it would not increase rates until inflation was sustainably within the 2-3 percent range.
Australian central bank’s surprise announcement
The surprise increase in the quantitative easing program triggered a broad market reaction. In the stock market, Australia’s financial subindex gained nearly 2% in its biggest intraday jump since Jan. 7, while yields on 10-year paper retreated to 1.115%, having hit a 10-month top of 1.19% early in the session. The Australian dollar weakened to $0.7625, compared with $0.7660 before the statement.