Following are the key headlines from the August RBA monetary policy statement, via Reuters, as presented by Governor Phillip Low.
Central scenario for the economy is that condition for rate rise will not be met before 2024.
The bank's central scenario is for the economy to grow by a little over 4 per cent over 2022 and by around 2½ per cent over 2023.
Scenario is based on a significant share of the population being vaccinated by the end of this year.
Board will maintain flexible approach to rate of bond purchases.
The unemployment rate continues to trend lower next year, to be around 4¼ per cent at the end of 2022 and 4 per cent at the end of 2023.
Bond program will continue to be reviewed in light of economic conditions and the health situation.
Board will not increase cash rate until actual inflation is sustainably within 2-3% target range.
Pick-up in both wages growth and underlying inflation is expected, but this pick-up is likely to be only gradual.
Meeting rate hike condition will require labor market to be tight enough to generate wages growth that is materially higher than it is currently.
Board remains committed to maintaining highly supportive monetary conditions.
In the bank's central scenario, it takes some years for the stronger economy to feed through into wage and price increases.
Housing markets have continued to strengthen.
Experience to date has been that once virus outbreaks are contained, the economy bounces back quickly.
Will be monitoring trends in housing borrowing carefully and it is important that lending standards are maintained.
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