Reserve Bank of Australia monetary policy meeting minutes
Comments on the Australian dollar from the minutes are not really notable:
- Members noted that the Australian dollar had appreciated further relative to the US dollar and on a trade-weighted basis, to be around levels previously recorded in January. This had followed the earlier depreciation up to the middle of March, which had been larger than that of most other advanced economy exchange rates. Movements in the Australian dollar over the course of this year had been closely correlated with global equity prices. While commodity prices and interest rate differentials between Australia and other advanced economies had increased in the recent period, they had generally been little changed since earlier in the year.
Headlines via Reuters (bolding is mine):
- members recognised that the global economy was experiencing a severe downturn
- affirmed that the target for three-year yields would be maintained until progress is made towards the bank's goals of full employment and the inflation target
- says over the preceding month, infection rates had declined in many countries
- if this were to continue, a recovery in the global economy could be expected to continue
- would not increase the cash rate until progress is made on employment, inflation targets
- Australian economy was experiencing the biggest economic contraction since the 1930s
- possible that the downturn would be shallower than earlier expected
- likely that fiscal and monetary support would be required for some time
- the outlook remained highly uncertain and the pandemic was likely to have long-lasting effects on the economy
- accommodative approach would be maintained as long as required
- members agreed that the bank's policy package was working broadly as expected
- prepared to scale up bond purchases again, if necessary
- bank had purchased government bonds on only one occasion since the previous meeting
- banks had indicated they planned to draw upon term funding facility in greater volumes over coming months to replace existing debt as it matures
