The Reserve Bank of Australia (RBA) is out with its June meeting’s minutes on Tuesday, citing that the board members recognized that the global economy was experiencing a severe downturn.
Additional points
Affirmed that the target for three-year yields would be maintained until progress is made towards the bank’s goals of full employment and the inflation target.
Over the preceding month, infection rates had declined in many countries
If this were to continue, a recovery in the global economy could be expected to continue
Would not increase the cash rate until progress is made on employment, inflation targets
Australian economy was experiencing the biggest economic contraction since the 1930s
It was possible that the downturn would be shallower than earlier expected
Likely that fiscal and monetary support would be required for some time
The outlook remained highly uncertain and the pandemic was likely to have long-lasting effects on the economy
Accommodative approach would be maintained as long as required
Members agreed that the bank’s policy package was working broadly as expected
Prepared to scale up bond purchases again, if necessary
The bank had purchased government bonds on only one occasion since the previous meeting
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