Following are the key headlines from the October RBA monetary policy statement, via Reuters, as presented by Governor Phillip Lowe.
Will not increase cash rate until progress made towards full employment and confident inflation will be sustainably within 2–3% band.
Board continues to consider how additional monetary easing could support jobs as the economy opens up further.
Government bond markets are functioning well.
Aussie dollar remains just a little below its peak of the past couple of years.
Board views addressing the high rate of unemployment as an important national priority.
Will maintain highly accommodative settings as long as is required.
Wage and prices pressures remain subdued.
The decline in June quarter output was smaller than in most other countries.
Labor market conditions have improved somewhat over the past few months and the unemployment rate is likely to peak at a lower rate than earlier expected.
Economic recovery is likely to be both uneven and bumpy.
Public sector balance sheets in Australia are in good shape, which allows for continued support, with the Australian government budget to be announced this evening.
The second-wave outbreak in Victoria has resulted in a further contraction in output there.
Fiscal and monetary support will be required for some time given the outlook for the economy.
Bank's policy package is working as expected and is underpinning very low borrowing costs and the supply of credit to households and businesses.
Unemployment and underemployment are likely to remain high for an extended period.
Wage and inflation pressures remain very subdued.
Very high level of liquidity in the Australian financial system and borrowing costs are at record low.
3-year yields have fallen to around 18 basis points as markets price in some probability of further monetary policy easing.
About RBA rate decision
RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.
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