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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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