RBA maintained cash rate target unchanged at 0.10%. Also, target for April 2024 government bond yield was also kept at 0.10%. More importantly, it maintained the tapering plan unchanged. Weekly purchases will be lowered from AUD 5B to AUD 4B starting early September, until at least mid-November.
RBA also pledged to “maintain its flexible approach to the rate of bond purchases”. The conditions for rate hike is not expected to be met before 2024.
The central bank said the outlook for the coming months is “uncertain” and depends up on the “evolution of the health situation and the containment measures”. Then, the central scenario is for the economy to grow by “a little over 4 per cent over 2022 and around 2½ per cent over 2023.”
Unemployment is expected to trend lower to 4.50% at the end of 2022, and then 4.0% at the end of 2023. Inflation is expected to be at 1.75% over 2022 and than 2.25% over 2023.
