Reserve Bank of Australia governor Philip Lowe’s supersized quantitative easing strategy is not undermined by a rise in long-term bond rates, he said, which have increased further this week.

On Wednesday, Dr Lowe said the central bank’s quantitative easing or QE program was working as intended, as it capped a rise in the Australian dollar. But the willingness of other central banks to extend their own QE programs had forced the hand of the Reserve Bank.