Following are the key headlines from the March RBA monetary policy statement, via Reuters, as presented by Governor Phillip Lowe.
Board does not expect tight labour market, high wages growth until 2024 at the earliest
“Significant gains” in employment and a return to a tight labour market is required to meet goals
Wages growth will have to be materially higher than it is currently
Remains committed to maintaining highly supportive monetary conditions until its goals are achieved
Economy is still operating with considerable spare capacity
Board will not increase the cash rate until actual inflation is sustainably within the 2-3% target range
Committed to the 3-year yield target and recently purchased bonds to support the target and will continue to do so as necessary
Bond purchases under the bond purchase program were brought forward this week to assist with the smooth functioning of the market
Monetary policy settings help the economy by keeping financing costs very low, contributing to a lower exchange rate than otherwise
Bank is prepared to make further adjustments to its purchases in response to market conditions
Housing credit growth to owner-occupiers has picked up, but investor and business credit growth remain weak
Lending standards remain sound
Since the start of 2020, the rba’s balance sheet has increased by around a$175 billion
Together, monetary and fiscal policy are supporting the recovery in aggregate demand and the pick-up in employment
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