The important headlines from the RBA’s June monetary policy announcement, as presented by Governor Phillip Lowe, are listed here, courtesy of Reuters.
The Board is dedicated to keeping monetary conditions as favorable as possible.
The labor market must be sufficiently tight to create pay growth that is significantly higher than it is now.
The Board will not raise the cash rate until real inflation falls within the target range of 2-3 percent.
Until at least mid-November, bond purchases will be made at a rate of $4 billion per week.
Unlikely as it may seem, employment and inflation targets will be met before 2024.
Measures will give the economy with the ongoing monetary assistance it requires as it transitions from recovery to expansion.
The Board is dedicated to achieving full employment and inflation in line with the target.
The housing market has continued to improve.
Australia’s economic recovery is progressing faster than anticipated.
The bank will keep a close eye on trends in home loan borrowing.
The impact of recent virus outbreaks and lockdowns is a near-term unknown.
Given that we are still some distance from our inflation and employment targets, the Bank will continue to buy bonds.
To date, experience has shown that once outbreaks are contained and limitations are lifted, the economy soon recovers.
The board has adjusted the weekly amount acquired in response to the stronger-than-expected economic recovery and improved outlook.
Despite a solid job recovery and indications of labor shortages, inflation and pay growth are still low.
In November, the board will conduct another review, allowing the board to respond to the current status of the economy.
Interest rates will remain low if the 10-basis-point objective for the April 2024 bond is maintained.
To meet the aim, the RBA will continue to act in the market.
This criteria will not be reached before 2024, according to the Bank’s central projection for the economy./n
