RBA: Policy support will be required for some time
The Reserve Bank of Australia’s board said in a policy meeting on Tuesday that, while the economic recovery has “generally been better” than previously predicted, it is “still expected to be uneven and protracted.” Board members acknowledged that “monetary and fiscal support will be required for some time,” although the developments concerning the coronavirus vaccines will “reduce downside risks to the medium-term economic outlook.”
The bank confirmed its existing policy settings, including a target for the cash rate of 0.1%, an interest rate of zero, a target of around 0.1% for the yield on the 3-year Australian Government bond, support for small and medium-sized businesses and the purchase of A$100 billion of government bonds of maturities of around 5 to 10 years. The board pointed out that it is prepared to do more if necessary.
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