RBA: Committed to maintaining highly supportive monetary conditions
|Following are the key headlines from the June RBA monetary policy statement, via Reuters, as presented by Governor Phillip Lowe.
Board is committed to maintaining highly supportive monetary conditions.
Labour market will need to be tight enough to generate wages growth that is materially higher than it is currently.
Board will not raise cash rate until actual inflation is sustainably within 2-3% target range.
Bond purchases will be at the rate of $4 billion a week until at least mid-November.
Unlikely employment, inflation goals will be achieved before 2024.
Measures will provide the continuing monetary support that the economy needs as it transitions from the recovery phase to the expansion phase.
Board is committed to achieving the goals of full employment and inflation consistent with the target.
Housing markets have continued to strengthen.
Economic recovery in Australia is stronger than earlier expected.
The bank will be monitoring trends in housing borrowing careful.
One near-term uncertainty is the effect of the recent virus outbreaks and the lockdowns
Bank will continue to purchase bonds given that we remain some distance from the inflation and employment objective.
Experience to date has been that once outbreaks are contained and restrictions are eased, the economy bounces back quickly.
The board is responding to the stronger-than-expected economic recovery and the improved outlook by adjusting the weekly amount purchased.
Despite the strong recovery in jobs and reports of labour shortages, inflation and wage outcomes remain subdued.
Will conduct a further review in November, allowing the board to respond to the state of the economy at that time.
Maintaining the target of 10 basis points for the April 2024 bond will continue to keep interest rates low.
RBA remains prepared to operate in the market to achieve the target.
Bank's central scenario for the economy is that this condition will not be met before 2024.
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