Following are the key headlines from the December RBA monetary policy statement, via Reuters, as presented by Governor Phillip Lowe.
Will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range
To purchase an additional $100 billion of bonds
Wages growth will have to be materially higher than it is currently
Additional purchases will be at the current rate of $5 billion a week
The board does not expect these conditions to be met until 2024 at the earliest
Remains committed to maintaining highly supportive monetary conditions until its goals are achieved
Given the current outlook for inflation and jobs, this is still some way off
Additional purchases to start once current bond purchase program is completed in mid april
The decision to extend the bond purchase program will ensure a continuation of this monetary support
Economic recovery is well under way and has been stronger than was earlier expected
Current monetary policy settings are continuing to help the economy by lowering financing costs for borrowers, contributing to a lower exchange rate than otherwise, supporting the supply of credit.
The central scenario being for gdp to grow by 3½ per cent over both 2021 and 2022.
Financial conditions remain highly accommodative.
Gdp is now expected to return to its end-2019 level by the middle of this year.