Early use of yield target a success: RBA

The yield target helped the economy recover from the pandemic, RBA governor Philip Lowe says. (AAP)

It was one of several unconventional monetary policy tools used by the Reserve Bank of Australia during the depths of the COVID-19 pandemic, but a new review has indicated it is unlikely to be used again.

The three-year bond yield target was introduced at an emergency RBA board meeting in mid-March 2020, alongside a cut in the cash rate to a then-record low of 0.25 per cent.