The board of directors decided to maintain current policies, including cash rates and a three-year Australian government bond return of 0.25%. Globally, although the situation in some markets is still fragile, the overall financial market situation continues to improve. With less volatility, the credit market is gradually opened to more companies.
Australia’s massive, coordinated and unprecedented fiscal and monetary easing policies have helped the economy through this difficult period. Fiscal and monetary support may still be needed for some time.
The board of directors pledged to do everything in its power to support employment, income and businesses to ensure Australia’s early recovery. The central bank’s actions kept financing costs low and supported the provision of credit to households and businesses. The central bank will maintain this flexible approach as long as necessary. The board of directors will not raise interest rates until it has made progress towards the goal of full employment and is confident that inflation will return to the target range of 2-3%.
rba.gov.au/mkt-operations/term-funding-facility/