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Following are the key headlines from the November RBA monetary policy statement, via Reuters, as presented by Governor Phillip Lowe.

Do not expect to raise the cash rate for at least three years

Decided on a package of further measures to support job creation and the recovery of the Australian economy from the pandemic

Board is prepared to do more if necessary.

Package includes the purchase of $100 billion of government bonds of maturities of around 5 to 10 years over the next six months

Under the program to purchase longer-dated bonds, the bank will buy bonds issued by the Australian government and by the states and territories

Monetary and fiscal support will be required for some time

Bonds will be bought in the secondary market through regular auctions, with the first auction to be held this Thursday

The bank remains prepared to purchase bonds in whatever quantity is required to achieve the 3-year yield target

Wages growth will have to be materially higher than it is currently to reach inflation target

Any bonds purchased to support 3-yr target would be in addition to the $100 billion bond purchase program

To keep the size of the bond purchase program under review

Positive GDP growth is now expected in the September quarter, despite the restrictions in Victoria

In the central scenario, GDP growth is expected to be around 6 per cent over the year to june 2021 and 4 per cent in 2022

It will take some time to reach the pre-pandemic level of output

The unemployment rate is expected to remain high, but to peak at a little below 8%

Lower interest rates across the yield curve will contribute to a lower exchange rate than otherwise

At the end of 2022, the unemployment rate is forecast to be around 6%

This extended period of high unemployment and excess capacity is expected to result in subdued increases in wages and prices over coming years

In underlying terms, inflation is forecast to be 1 per cent in 2021 and 1½ per cent in 2022

more to come …

About RBA rate decision

RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.