Cash rate -
* The Reserve Bank of Australia (RBA) has decided to maintain the cash rate at 10 basis points.
* The RBA will continue with its bond purchase program, buying an additional $100 billion in Australian Government and state/territory bonds.
Employment -
* Australia's economic recovery is well underway, with strong growth in employment.
* The unemployment rate has declined to 6.6%, indicating positive progress.
Wages -
* Wage growth remains subdued, with the Wage Price Index at its slowest rate on record.
* Inflation and wages are expected to gradually pick up but are likely to remain below 2% in the next few years.
Inflation -
* Inflation remains low and below the central bank's targets.
* The Consumer Price Index (CPI) increased by only 0.9% over the year to the December quarter.
Housing -
* Financial conditions remain accommodative, with record-low lending rates and mostly increasing housing prices.
* Housing credit growth for owner-occupiers has recently picked up, while investor and business credit growth remains weak.
Economic outlook -
* Australia's economic recovery is expected to continue, with GDP projected to grow by 3.5% in 2021 and 2022. However, spare capacity in the economy is expected to persist, with the unemployment rate remaining elevated.
Cash rate -
* The Board has decided to maintain the current cash rate target of 10 basis points, along with other policy settings.
Employment -
* Australia's economic recovery is progressing well, with strong growth in employment and a decline in the unemployment rate to 6.4 percent.
* Further reduction in spare capacity and progress in the labor market is expected, but it will take time for wages to increase significantly.
Wages -
* Wage and price pressures are currently subdued and are expected to remain so for the coming years.
* Achieving the inflation target will require higher wages, which depend on substantial gains in employment and a tighter labor market.
Inflation -
* Inflation remains low and below central bank targets, but temporary increases are expected due to the reversal some price reductions.
* Underlying inflation is projected to be around 1¼ percent in 2021 and 1½ percent in 2022.
Housing -
* Housing prices have recently increased in Australia, and lending rates for most borrowers are at record lows.
* Housing credit growth for owner-occupiers has picked up, while investor and business credit growth remain weak.
* Lending standards are sound, and the Bank emphasizes their importance in an environment of rising housing prices and low interest rates.
Economic outlook -
* The global economic outlook has improved, with better prospects for sustained recovery due to vaccine rollouts and fiscal support.
* Australia's economic recovery is stronger than expected, with retail spending remaining strong, loan repayments recommencing, and GDP expected to grow by 3½ percent in both 2021 and 2022.
Other -
* The Reserve Bank of Australia remains committed to the 3-year yield target and bond purchases to support market functioning.
* The Bank's balance sheet has increased significantly, and it stands ready to make further adjustments to its purchases based on market conditions.
* The Board is determined to maintain highly supportive monetary conditions until its goals are achieved, and it does not anticipate an increase in the cash rate until at least 2024.
Cash rate -
* The Board decided to maintain the current cash rate target of 10 basis points.
Employment -
* The economic recovery in Australia is stronger than expected, with the unemployment rate falling to 5.8% in February.
* The number of people with jobs has returned to pre-2020 levels.
Wages -
* Wage and price pressures remain subdued and are expected to stay that way for several years.
* Significant gains in employment and a tight labor market are needed for substantial wage increases.
Inflation -
* Inflation remains low and below central bank targets.
* Temporary CPI inflation is expected to rise due to the reversal of some price reductions.
* Underlying inflation is projected to remain below 2% in the next few years.
Housing -
* Housing markets have strengthened, with rising prices in most areas.
* Housing credit growth for owner-occupiers has increased, particularly driven by first-home buyers.
Economic outlook-
* The global economy is recovering, supported by vaccine rollouts and fiscal stimulus.
* Uncertainties remain, but there are better prospects for sustained recovery compared to previous months.
* The Australian economy is expected to experience above-trend growth this year and next.
Other -
* The Reserve Bank of Australia (RBA) remains committed to the 3-year government bond yield target of 10 basis points.
* Monetary measures, including low financing costs and credit support, are helping the economy.
* The RBA's balance sheet has increased by around $215 billion since the start of 2020.
* The Board anticipates maintaining highly supportive monetary conditions until goals are achieved, expecting no cash rate increase until 2024 at the earliest.
Cash rate-
* The Board has decided to maintain the cash rate at the current level of 10 basis points.
Employment-
* The Australian economy has experienced a stronger-than-expected recovery, with employment levels surpassing pre-pandemic levels.
* The unemployment rate has fallen to 5.6% in March, and further declines are expected.
Wages -
* Wage growth and inflation pressures remain subdued in most parts of the Australian economy.
* A gradual and modest pick-up in inflation and wages growth is anticipated.
Inflation -
* Inflation remains low and below central bank targets.
* Temporary inflationary pressures are expected in the short term due to the reversal of price reductions.
Housing -
* Housing markets have strengthened, with rising prices observed in all major markets.
* Housing credit growth has increased, driven by strong demand from owner-occupiers, particularly first-home buyers.
* The Bank will closely monitor housing borrowing trends and maintain lending standards.
Economic outlook -
* The global economy is recovering from the pandemic, although the pace of recovery varies across countries.
* Global trade has picked up, and commodity prices are generally higher.
* The Australian economy is expected to experience strong growth in 2021 and 2022, supported by business investment and household spending.
Other -
* The Board will consider whether to retain the April 2024 bond as the target bond for the 3-year yield or shift to the November 2024 bond.
* The Bank is prepared to undertake further bond purchases to support full employment and inflation goals.
* The Term Funding Facility will conclude on June 30, 2021, with $100 billion drawn so far. No further extension is under consideration.
* The Board is committed to maintaining highly supportive monetary conditions until achieving full employment and sustainable inflation within the target range.
Cash rate-
* The Board decided to maintain the cash rate at 10 basis points, along with other policy settings.
* The rate of zero per cent on Exchange Settlement balances is also being maintained.
Employment -
* Australia's economic recovery has led to a faster decline in unemployment than expected.
* The unemployment rate decreased to 5.5 per cent in April, with expectations of further decline to around 5 per cent by the end of the year. * Some parts of the economy are experiencing labor shortages.
Wages -
* Inflation and wage pressures remain subdued despite the strong recovery in the economy and jobs.
* A gradual and modest pick-up in inflation and wages growth is expected.
* In the central scenario, underlying inflation is forecasted to be 1.5 per cent in 2021 and 2 per cent in mid-2023.
Inflation -
* Global inflation in underlying terms remains low and below central bank targets.
* Medium-term inflation expectations have improved but are still closer to central banks' targets.
* Temporary rise in CPI inflation is expected in the June quarter.
Housing -
* Housing markets in Australia have continued to strengthen, with rising prices in all major markets.
* Housing credit growth has increased, driven by strong demand from owner-occupiers and first-home buyers.
* The Bank is closely monitoring housing borrowing trends and emphasizes the importance of maintaining lending standards.
Economic outlook -
* The global economy is recovering from the pandemic, with strong growth expected this year and next.
* Recovery remains uneven, and uncertainties persist in containing the virus in some countries.
* Fiscal measures and accommodative financial conditions support Australia's economic outlook.
Other -
* The Board will consider whether to retain the April 2024 bond or shift to the November 2024 bond as the target bond for the 3-year yield target.
* Future bond purchases will be discussed, and a return to full employment remains a high priority.
* The Term Funding Facility will continue until June 2021, providing low-cost fixed-rate funding until mid-2024.
Cash rate-
* The Board decided to maintain the cash rate target at 10 basis points.
This decision aims to provide continued monetary support for the transitioning economy.
Employment -
*The labor market has experienced a faster-than-expected recovery.
* The unemployment rate declined to 5.1 percent in May, with more Australians employed than pre-pandemic.
* Labor force participation is at record highs, but shortages of labor are reported in sectors affected by border closures.
Wages -
* Despite the recovery in jobs and reports of labor shortages, wage outcomes remain subdued.
* Expectations indicate a gradual and modest pick-up in wages growth.
Inflation -
* Inflation in underlying terms is expected to be around 1.5 percent in 2021 and reach 2 percent by mid-2023.
* Temporary CPI inflation is anticipated to rise to approximately 3.5 percent for the year ending in the June quarter
Housing -
* Housing markets have continued to strengthen, with rising prices in major markets.
* Strong demand from owner-occupiers, including first-home buyers, has contributed to increased housing credit growth.
* Borrowing by investors has also increased.
* Monitoring of housing borrowing trends and maintenance of lending standards are important in the current environment of rising housing prices and low interest rates.
Economic Outlook -
* The economic recovery in Australia is stronger than expected and is forecast to continue.
* Improved investment outlook, favorable household and business balance sheets, and high commodity export prices support the national income.
* Domestic financial conditions are highly supportive, and the recent depreciation of the exchange rate provides additional support.
* Near-term uncertainty exists but the economy has shown resilience in bouncing back.
Cash rate -
* The Board decided to maintain the cash rate target at 10 basis points and the interest rate on Exchange Settlement balances at zero percent.
* The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 percent target range, which is not expected before 2024.
Employment -
* The labor market has recovered faster than expected, with the unemployment rate declining to 4.9 percent in June.
* Job vacancies remain high, but some increase in the unemployment rate is expected due to current lockdowns.
* The central scenario predicts a downward trend in the unemployment rate, reaching around 4 percent by the end of 2023.
Wages -
* A gradual pick-up in wages growth is expected, but it may take some years for the stronger economy to result in significant wage increases. * Wage growth is uncertain at low levels of forecasted unemployment.
Inflation -
* CPI inflation spiked to 3.8 percent for the year to the June quarter.
* Underlying inflation remains low, at around 1.75 percent.
* Inflation is expected to increase gradually, reaching 2.25 percent in 2023.
Housing-
* Housing markets have continued to strengthen, with rising prices in all major markets.
* Housing credit growth has increased, driven by strong demand from owner-occupiers and investors.
* Close monitoring of housing borrowing trends is essential, along with maintaining lending standards.
Economic outlook -
* The Australian economy's recovery has been stronger than expected, but there have been some interruptions to the momentum.
* GDP is expected to decline in the September quarter, but a quick rebound is anticipated.
* The economic outlook for the coming months is uncertain.
* The central scenario predicts a little over 4 percent growth in 2022 and around 2.5 percent growth in 2023.
Cash rate -
* The Board decided to maintain the cash rate target at 10 basis points and the interest rate on Exchange Settlement balances at zero percent.
Employment -
* Prior to the Delta outbreak, the Australian economy showed significant momentum with GDP growth of 0.7% in the June quarter and nearly 10% over the year.
* The labor market had strengthened, with the unemployment rate falling below 5% and high job vacancies.
* However restrictions have interrupted the economic recovery.
* GDP is expected to decline in the September quarter, and the unemployment rate is likely to increase in the coming months.
Wages -
* Despite strong economic and labor market outcomes before the Delta outbreak, wage and price pressures remain subdued. The Wage Price Index increased by only 1.7% over the year to the June quarter.
Inflation -
* Inflation remains subdued, with no significant increase in wage and price pressures.
Housing -
* Housing prices continue to rise, although turnover in some markets has declined due to the virus outbreak.
* Housing credit growth has increased due to strong demand from both owner-occupiers and investors.
* Monitoring trends in housing borrowing and maintaining lending standards is crucial given the environment of rising housing prices and low interest rates.
Economic outlook -
* The timing and pace of the bounce-back are uncertain and likely to be slower than earlier in the year.
* The economy is expected to be growing again in the December quarter and return to its path in the second half of next year.
Cash rate -
* The cash rate target remains at 10 basis points.
* The interest rate on Exchange Settlement balances remains at zero percent.
* Cash rate will not increase until inflation is sustainably within the 2 to 3 percent target range.
Employment -
* There has been an interruption to the recovery of the Australian economy.
* GDP is expected to have declined materially in the September quarter.
* Hours worked declined by nearly 4 percent in August due to restrictions on activity.
* Many firms are seeking to hire workers ahead of the expected reopening.
Wages -
* Wage and price pressures remain subdued.
* Inflation is running at around 1¾ percent.
* Wage growth, as measured by the Wage Price Index, is at just 1.7 percent.
Inflation -
* Disruptions to global supply chains are affecting the prices of some goods.
* Overall rate of inflation remains limited.
Housing -
* Housing prices are continuing to rise.
* Turnover in some markets has declined following the virus outbreak.
* Housing credit growth has picked up due to stronger demand for credit.
Economic outlook -
* The setback to the economic expansion is expected to be temporary.
Other -
* The Bank's policies, including record low interest rates, bond purchase program, yield target, and funding, support the Australian economy.
* Lending standards should be maintained, and loan serviceability buffers should be appropriate.
* The Board is committed to maintaining highly supportive monetary conditions to achieve full employment and target inflation.
Cash rate -
* The Board decided to maintain the cash rate target at 10 basis points and the interest rate on Exchange Settlement balances at zero per cent.
* The cash rate will not be increased until actual inflation is sustainably within the 2 to 3 per cent target range.
Employment -
* There has been a temporary decline in hours worked, but the economy is now experiencing a bounce-back, with firms expected to hire more in the coming months.
* The central forecast indicates a downward trend in the unemployment rate, reaching 4¼ per cent at the end of 2022 and 4 per cent at the end of 2023.
Wages -
* Inflation has increased, but underlying inflation remains low at 2.1 per cent.
* Gradual pick-up in underlying inflation and wages growth is expected as the labor market tightens.
* The Wage Price Index is forecasted to increase by 2½ per cent over 2022 and 3 per cent over 2023.
Inflation -
* Inflation has picked up, influenced by higher petrol prices, higher prices for newly constructed homes, and disruptions in global supply chains.
* Underlying inflation is projected to be around 2¼ per cent over 2021 and 2022 and 2½ per cent over 2023.
Housing -
* Housing prices continue to rise in most markets, and housing credit growth has increased due to strong demand from owner-occupiers and investors.
* It is important to maintain lending standards given historically low interest rates.
Economic outlook -
* The Australian economy is recovering with a central forecast of 3 per cent GDP growth in 2021 and further growth in the following years.
* Uncertainty remains due to potential setbacks on the health front.
Other -
* Financial conditions remain accommodative, with record-low lending rates and a recent increase in bond yields.
* The Board is committed to maintaining supportive monetary conditions to achieve full employment and inflation within the target range.
Cash rate -
* The Board decided to maintain the cash rate target at 10 basis points.
* The interest rate on Exchange Settlement balances will remain at zero per cent.
Employment -
* Leading indicators suggest a strong recovery in the labour market.
* Job advertisements are at historically high levels, indicating increased hiring activity.
* Firms are facing difficulties in finding workers.
Wages -
* Wages growth has picked up but remains relatively low.
* Further gradual pick-up in wages growth is expected as the labour market tightens.
* Uncertainty remains about wages behavior as the unemployment rate declines.
Inflation -
* Inflation has increased, but underlying inflation is still low at 2.1 per cent.
* Higher petrol prices, newly constructed home prices, and global supply chain disruptions are affecting the headline CPI inflation rate.
* Gradual pick-up in underlying inflation is anticipated, with a central forecast of reaching 2.5 per cent over 2023.
Housing -
* Housing prices have risen strongly, although the rate of increase has slowed in recent months.
* Housing credit has increased, but the value of housing loan commitments has declined from high levels.
* Lending standards and borrower buffers need to be maintained with low interest rates.
Economic Outlook -
* The Australian economy is recovering.
* Household consumption is strong, and business investment outlook has improved.
Other -
* The Board will consider the bond purchase program at its February meeting, guided by various factors.
* The Australian dollar exchange rate has depreciated.
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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