RBA reiterated in the June minutes that it will make the decision on 3-year yield target and government bond purchase program at the July meeting. It emphasize “a return to full employment as a priority for monetary policy that would assist with achieving the inflation target”.
It will consider whether to extend the 3-year yield target from April 2024 bond to November 2024 bond. A key considering would be the prospect of having inflation sustainably within the 2-3% target rate some time in 2024.
Four options regarding future bond purchases after completion of the second AUD 100B of purchases in early September were discussed. The options included ceasing the purchases, repeating the AUD 100 purchases for another 6 months, scaling back the amount or spreading over a longer period, and moving to an approach where pace of purchases is reviewed more frequently.
