RBA: Reasonable to expect extended period of low rates

Following are the key headlines from the October RBA monetary policy statement (via Reuters):

Reasonable to expect extended period of low rates.

RBA will ease further if needed.

Gentle turning point appears to have been reached.

Economy still has spare capacity.

Australian dollar at lower levels of recent times.

Inflation pressures subdued and likely to be for some time.

Signs of turnaround in established housing markets, but new dwelling activity has weakened.

Took the decision to lower interest rates further today to support employment and income growth.

Forward-looking indicators of labor demand indicate that employment growth is likely to slow from its recent fast rate.

Economy still has spare capacity and lower interest rates will help make inroads into that

Recent outcomes suggest Australian economy can sustain lower rates of unemployment and underemployment.

Board also took account of the forces leading to the trend to lower interest rates globally.

In both headline and underlying terms, inflation is expected to be a little under 2 percent over 2020 and a little above 2 percent over 2021.

Credit conditions, especially for small and medium-sized businesses, remain tight.

The Aussie is seen fading the knee-jerk spike to 0.6765, now trading near 0.6735 region, as the RBA leaves doors open for further easing.