Cash rate -
* The Reserve Bank of Australia (RBA) has decided to keep the cash rate unchanged at 0.75%.
* Interest rates are currently very low globally, with many central banks easing monetary policy.
Employment -
* The unemployment rate in Australia decreased to 5.1% in December and is expected to remain around this level for some time.
* Employment and income growth are being supported by the easing of monetary policy.
Wages -
* Wages growth in Australia is subdued and expected to remain at its current rate for some time.
* A gradual lift in wages growth is necessary for inflation to be sustainably within the target range.
Inflation -
* Inflation in Australia remains low and stable, with CPI inflation at 1.8% in 2019.
* The central scenario is for CPI inflation to be around 2% in the near term and gradually increase over the next few years.
Housing -
* Established housing markets, particularly in Sydney and Melbourne, are showing signs of a pick-up.
* Mortgage rates are at record lows, and there is strong competition for borrowers of high credit quality.
Economic outlook -
* The global economic outlook is reasonable, with signs of the slowdown in global growth coming to an end.
* Uncertainties include the trade dispute between the US and China, the impact of the coronavirus on the Chinese economy, and the duration of these effects.
* The Australian economy is expected to grow around 2¾% this year and 3% next year, supported by low interest rates, tax refunds, infrastructure spending, and a recovery in residential construction.
Other -
* The RBA will continue to monitor developments carefully, including the labor market, and is prepared to ease monetary policy further if needed.
* An extended period of low interest rates is expected to be necessary in Australia to reach full employment and achieve the inflation target.
Cash rate -
* The Board has decided to lower the cash rate by 25 basis points to 0.50% to support the economy
Employment -
* The unemployment rate increased to 5.3% in January and has remained around 5¼% since April last year.
Wages -
* Wages growth remains subdued and is not expected to pick up in the near term.
Inflation -
* Inflation remains low almost everywhere, and a gradual lift in wages growth is needed for inflation to be within the target range of 2-3%.
Housing -
* Established housing markets are showing signs of improvement, with prices rising in most markets.
* Mortgage loan commitments have increased, but demand for credit by investors remains subdued.
* Mortgage rates are at record lows, and there is strong competition for borrowers with high credit quality.
* Credit conditions for small and medium-sized businesses remain tight.
Economic outlook -
Other -
* Long-term government bond yields have fallen to record lows globally, including in Australia.
* The Australian dollar has depreciated and is at its lowest level in years.
* Financial markets have experienced volatility.
* The Reserve Bank of Australia ensures the effective functioning of the country's financial markets and sufficient liquidity in the financial system.
Cash rate -
* The Reserve Bank has reduced the cash rate target to 0.25% in response to the economic challenges
* The aim is to support the economy and mitigate disruptions.
Employment -
* Preserving jobs and supporting businesses is a priority for the Reserve Bank during this challenging period.
* Measures such as the reduction in the cash rate aim to provide relief and promote economic stability.
Wages -
* There are no notes related to wages from this RBA meeting.
Inflation -
* The Reserve Bank's focus is currently on managing the economic and financial disruptions resulting from the virus, rather than inflation.
Housing -
* There are no notes related to housing from this RBA meeting.
Economic outlook -
*
Other -
* The Reserve Bank has implemented a comprehensive package to support the Australian economy during this challenging period.
* Measures include reducing the cash rate, targeting the yield on government bonds, and providing a term funding facility for banks.
* The financial system is considered resilient, and cooperation between the Reserve Bank, financial regulators, and the Australian Government is crucial for effective operation and the availability of credit.
Cash rate -
* The Board reaffirmed the cash rate target of 25 basis points.
* The rate is expected to remain unchanged until progress is made towards full employment and inflation targets.
Employment -
* Many countries, including Australia, are expected to experience significant economic contractions and increased unemployment
Wages -
* There are no notes related to wages from this RBA meeting.
Inflation -
* There are no notes related to wages from this RBA meeting.
Housing -
* There are no notes related to housing from this RBA meeting.
Economic outlook -
* There is considerable uncertainty about the near-term outlook for the Australian economy.
* A large economic contraction is expected in the June quarter, and the unemployment rate is expected to increase significantly. C
* Coordinated monetary and fiscal responses, along with measures taken by banks, aim to soften the contraction and support the economy's recovery once restrictions are lifted.
Other -
* The functioning of government bond markets has improved in Australia.
* The Reserve Bank has injected liquidity into the financial system and will continue to ensure sufficient liquidity.
* The Term Funding Facility has been introduced to lower funding costs and incentivize credit support for businesses, especially small and medium-sized ones.
* The Australian financial system is resilient and well-capitalized.
Cash rate -
* The Board decided to maintain the current policy settings, including the cash rate target of 25 basis points.
Employment -
* The global economy is facing a severe downturn, resulting in a rise in unemployment.
* The Board considered various scenarios, with the baseline projecting a peak unemployment rate of around 10% in the coming months.
Wages -
* There are no notes related to wages from this RBA meeting.
Inflation -
* Inflation is expected to remain below 2% over the next few years.
* Temporary deflation is anticipated in the June quarter due to falling oil prices and the introduction of free child care.
Housing -
* There are no notes related to housing from this RBA meeting.
Economic outlook -
* The global economy is expected to recover later in the year, supported by fiscal packages and monetary policy easing.
* The Australian economy is going through a challenging period, with output projected to decline by around 10% in the first half of 2020.
Other -
* Financial markets have improved but conditions have not completely normalized.
* The Bank has scaled back bond purchases and will adjust them as necessary to ensure market functionality. The Bank's open market operations continue to support credit and maintain low funding costs. The Board is committed to supporting jobs, incomes, and businesses during this difficult period. The Board will not increase the cash rate until progress is made towards full employment and achieving inflation within the target band.
Cash rate -
* The Board has decided to maintain the current cash rate target of 25 basis points.
Employment -
* The global economy is facing a severe downturn, leading to a rise in unemployment.
* In Australia, there has been a significant decline in total hours worked and a large number of job losses.
Wages -
* There are no notes related to wages from this RBA meeting.
Inflation -
* The outlook for inflation remains uncertain, with the pandemic expected to have long-lasting effects on the economy.
* In the short term, inflation is expected to be influenced by factors such as declining oil prices and changes in consumer spending.
Housing -
* There are no notes related to housing from this RBA meeting.
Economic outlook -
* The global economy is expected to recover with the support of fiscal packages and monetary policy easing.
* Conditions in financial markets have improved, although some fragility remains.
* In Australia, the government bond markets are functioning effectively, and efforts will be made to achieve the yield target for 3-year Australian Government Securities.
* The Australian economy is going through a difficult period, but there are signs of stabilization and some forms of consumer spending have picked up.
* The outlook for the recovery remains highly uncertain, and it depends on factors such as confidence in the health situation and financial conditions.
Cash rate -
* The cash rate target remains unchanged.
* The Board has decided to maintain the current policy settings, including the targets for the cash rate and the yield on 3-year Australian Government bonds.
* The Board will not increase the cash rate target until progress is made towards full employment and sustainable inflation within the target band
Employment -
* The global economy has experienced a severe downturn, resulting in a sharp rise in unemployment.
* Leading indicators suggest that the worst of the global economic contraction has passed.
* In Australia, the economy has been significantly impacted, with an unprecedented number of job losses.
Wages -
* There are no notes related to wages from this RBA meeting.
Inflation -
* The outlook for inflation remains uncertain, with the global economic recovery expected to be bumpy.
* Bond yields remain at historically low levels, indicating low inflation expectations.
Housing -
* There are no notes related to housing from this RBA meeting.
Economic outlook -
* The global financial markets have shown improvement, with declining volatility and increased raisings of debt and equity.
* In Australia, the government bond markets are functioning effectively, and measures are in place to ensure their functionality.
* The Australian economy is going through a difficult period, experiencing the biggest contraction since the 1930s.
* While recent data suggests some stabilization and a smaller decline in total hours worked, the nature and speed of the economic recovery remain highly uncertain.
* The substantial fiscal and monetary support provided by the government is helping the economy during this challenging period.
Other -
* The Board is committed to supporting jobs, incomes, and businesses to ensure Australia is well-positioned for recovery.
* The accommodative approach of keeping funding costs low and supporting credit supply will be maintained.
Cash rate -
* The cash rate remains unchanged.
Employment -
* The global economy is facing a severe contraction.
* The recovery is expected to be gradual.
* International trade remains weak, but industrial activity in China has shown a strong recovery.
* Unemployment is expected to rise to around 10% in 2020 due to job losses, but it is projected to gradually decline to around 7% over the next couple of years.
Wages -
* There are no notes related to wages from this RBA meeting.
Inflation -
* Inflation has remained below 2% over the next couple of years.
* Recent CPI inflation fell to -0.3% in year-ended terms due to lower oil prices and policy measures.
* Inflation is expected to return to positive territory in the current quarter, but overall, it is projected to average between 1% and 1.5% over the next couple of years.
Housing -
* There are no notes related to housing from this RBA meeting.
Economic outlook -
* The Australian economy is going through a challenging period but is experiencing a recovery.
Cash rate -
* The Board has decided to maintain the targets for the cash rate and the yield on 3-year Australian Government bonds at 25 basis points.
Employment -
* Employment increased in June and July, but unemployment and underemployment remain high.
* It may take several months before a significant recovery in the labor market begins.
* In the Bank's central scenario, the unemployment rate is projected to rise to around 10% in 2020 and gradually decline to approximately 7% in two years.
Wages -
* Wage and price pressures remain subdued, suggesting inflation will remain low for some time. (see more on inflation below)
Inflation -
* Inflation is expected to average between 1% and 1.5% over the next couple of years.
Housing -
* There are no notes related to housing from this RBA meeting.
Economic outlook -
* The Australian economy is going through a challenging period but is experiencing a recovery.
* The downturn is not as severe as initially anticipated, and a recovery is underway in most parts of Australia.
* The future path of the global economic recovery depends on virus containment efforts.
* Financial markets have seen low volatility, and asset prices have risen despite economic uncertainty.
* Bond yields remain historically low.
* The Australian dollar has appreciated due to the depreciation of the US dollar and higher commodity prices.
Cash rate -
* The Board decided to maintain the current policy settings, including the targets for the cash rate.
* The cash rate target will not be increased until progress is made towards full employment and sustainable inflation within the target range.
* Financial conditions remain accommodative globally, with low bond yields and interest rates for businesses and households.
Employment -
* The Australian economy experienced a sharp contraction in the June quarter, but a recovery is underway in most parts of Australia.
* Labour market conditions have improved somewhat, but unemployment and underemployment are expected to remain high for an extended period.
* The unemployment rate is likely to peak at a lower rate than earlier expected.
Wages -
* Wage and inflation pressures remain very subdued in the Australian economy.
* Updated forecasts on wages will be published next month.
Inflation -
* Globally, inflation remains very low and below central bank targets.
Housing -
* There are no notes related to housing from this RBA meeting.
Economic outlook -
* The global economy is gradually recovering after a severe contraction, but the pace of recovery is uneven and dependent on virus containment. * China's economic conditions have improved substantially.
* The Australian economy is experiencing a bumpy and uneven recovery.
* The level of output is not expected to return to its end-2019 level for some time.
Other -
* The Australian economy has been supported by a substantial easing of fiscal policy over the past six months.
* The Reserve Bank's policy package is working as expected, supporting low borrowing costs and credit supply to households and businesses.
* Government bond markets are functioning well, with low yields and increased issuance.
* The Board is committed to supporting jobs, incomes, and businesses in Australia and will maintain accommodative policy settings as long as necessary.
* Additional monetary easing measures are being considered to support the economy as it further opens up.
Cash rate -
* The Reserve Bank of Australia (RBA) has reduced the cash rate target to 0.1% as part of its measures to support job creation and economic recovery.
* The interest rate on new drawings under the Term Funding Facility has also been reduced to 0.1%.
* The Board does not anticipate increasing the cash rate for at least three years.
Employment -
* The RBA acknowledges the need to support the creation of jobs, as Australia faces a period of high unemployment.
* Recent economic data have been slightly better than expected, and the near-term outlook has improved compared to three months ago.
* The unemployment rate is expected to peak at below 8% and gradually decline to around 6% by the end of 2022.
Wages -
* With extended high unemployment and excess capacity, wage increases are expected to remain subdued over the coming years.
Inflation -
* Inflation is forecasted to be 1% in 2021 and 1.5% in 2022, reflecting the prolonged period of high unemployment and excess capacity.
* The RBA will not increase the cash rate until inflation is sustainably within the target range of 2-3%.
Housing -
* There are no notes related to housing from this RBA meeting.
Economic outlook -
* The global economy is recovering.
* The Australian economic recovery is underway, with positive GDP growth expected in the September quarter.
* GDP growth is forecasted to be around 6% in the year to June 2021 and 4% in 2022.
Other -
* The RBA will purchase $100 billion of government bonds with maturities of around 5 to 10 years over the next six months.
* The bond purchases aim to achieve the 3-year yield target and will be in addition to the $100 billion bond purchase program.
* The RBA's measures will lower financing costs for borrowers, contribute to a lower exchange rate, and support asset prices and balance sheets.
* Monetary and fiscal support will be required for some time, and the RBA is prepared to do more if necessary.
Cash rate -
* The Board has decided to maintain the cash rate target of 10 basis points, indicating a continued accommodative monetary policy stance.
Employment -
* Employment growth in October was strong, but the unemployment rate increased to 7 percent as more people reentered the workforce.
* The unemployment rate is expected to rise further as businesses restructure due to the pandemic, with a slow decline expected next year.
Wages -
* Wage growth remains subdued, with the Wage Price Index increasing by only 0.1 percent in the September quarter.
* Subdued increases in wages are anticipated in the coming years, reflecting the extended period of high unemployment and excess capacity.
Inflation -
* Inflation is forecasted to be 1 percent in 2021 and 1.5 percent in 2022, remaining below the central bank's target range.
* Low inflation is attributed to the prolonged high unemployment and excess capacity in the economy.
Housing -
* There are no notes related to housing from this RBA meeting.
Economic Outlook -
* The Australian economic recovery is underway, with recent data generally better than expected.
* However, the recovery is expected to be uneven and prolonged, relying on significant policy support.
* GDP is projected to reach pre-pandemic levels by the end of 2021, with growth expected to be around 5 percent in 2022 and 4 percent in 2022.
The RBA cash rate is the benchmark interest rate for the Australian economy. It is the rate at which financial institutions lend and borrow money from each other in the overnight money market, and it is used as a reference point for setting other interest rates in the economy. Read more about the RBA cash rate here.
The RBA cash rate is announced on the first Tuesday of every month, except in January, The announcement is typically made at 2:30 PM Sydney time,
On a monthly basis, the Reserve Bank of Australia (RBA) convenes to assess the cash rate and determine if any adjustments are required. These meetings are scheduled ahead of time, with the precise dates and times announced in advance. Following each meeting, the RBA promptly discloses its decisions to the public.
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