Reserve Bank of Australia minutes from the Dec meeting, where policy was keep unchanged.
- prepared to do more if needed, focus on bond buying program
- will review size of program at future meetings and its effect on economy
- substantial policy support will be needed for a considerable period
- RBA does not expect to raise the cash rate for at least three years
- will not raise rates until inflation sustainably in 2-3% target band
- ready to buy bonds in whatever amount needed to maintain 3-year yield target
- latest policy easing had kept A$ lower than otherwise would be
- recovery in labour market more advanced than expected, still much spare capacity
- "substantial tightening" in labour market needed to lift wage growth, inflation
- extended period of high unemployment in prospect, national priority to address it
- national house prices up "only a little" since the start of the pandemic, slow population growth a restraint
- slump in migration put downward pressure on rents, vacancy rates high
- China restrictions on Australia imports had some effect, but demand for iron ore still firm
- delivery of vaccines in US, Europe would reduce downside risks for global growth
Headlines via Reuters
Full text: Minutes of the December 2020 Monetary Policy Meeting of the Reserve Bank Board
