In the minutes of July 5 meeting, RBA reiterated that the “central scenario implied that the conditions for an increase in the cash rate would not be met until 2024”. However, “fast-than expected” recovery over the course of 2021 had “widened the range of alternative plausible scenarios for the economic outlook”, and thus, “the cash rate over the period to November 2024”. Hence, it decided to retain April 2024 bond as the target bond, rather than extending the horizon to November 2024 bonds.
On the decision on the size of weekly bond purchases, it noted that “the economic outcomes had been materially better than earlier expected and the outlook had improved”. And, “in light of these improvements and the agreed decision-making framework, members decided to adjust the weekly purchases from $5Â billion to $4Â billion and agreed to review the rate of purchases at the November 2021 meeting.”
