RBA kept monetary policy settings unchanged as widely expected, including cash rate and 3-year yield target at 0.10%. Also, parameters of the Term Funding Facility and asset purchases are maintained.
The central bank reiterated that recovery in Australia is “well under way and is stronger than had been expected”. Recovery is “expected to continue, with above-trend growth this year and next”. But wage and price pressures are “subdued” and are expected to “remain so for some time”. Underlying inflation is expected to “remain below 2 per cent over the next few years”.
It also kept the pledge to ” maintaining highly supportive monetary conditions until its goals are achieved”. Conditions for a rate hike is not expected to be met “until 2024 at the earliest”.
