RBA says yield target was successfully used (but there is a but)

The Reserve Bank of Australia has published its:

Review of the Yield Target

(link to the full text)

Headlines via Reuters:

RBA says:

• Any use of a yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term target would require close attention to the lessons learned from this experience,
• Says yield target successfully reinforced the bank's forward guidance about the cash rate
• But its effectiveness as a monetary policy tool waned as market participants reassessed their views of the outlook for the cash rate
• While a bond purchase program offers more flexibility than a yield target, it carries other risks
• Exit experience caused some reputational damage to the bank.
• Board has agreed to strengthen the way it considers the full range of scenarios when making policy decisions
• Now that the board has more experience with bond purchase programs, it is likely that, in the future, bond purchases would be preferred to a bond yield target