RBA left monetary policy unchanged as widely expected. The cash rate target is held at 0.10%. It reiterated that “the Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range.”
Asset purchases will continue at AUD 4B a week until at least mid-February 2022. The decision on the program in February will be guided by the same three considerations used from the outset: “the actions of other central banks; how the Australian bond market is functioning; and, most importantly, the actual and expected progress towards the goals of full employment and inflation consistent with the target.”
