Reserve Bank of Australia October 2020 policy meeting minutes

  • board agreed to maintain highly accommodative policy settings as long as required
  • members observed that the global economy was gradually recovering
  • the continuation of the recovery was dependent on containment of the virus
  • continue to consider how additional monetary easing could support jobs
  • the Australian economy had experienced the largest peacetime economic contraction since the 1930s
  • members noted that the decline in output in the june quarter had been smaller than in most other countries and smaller than had been expected
  • recovery was under way in most of australia
  • the second covid-19 outbreak in victoria and associated restrictions on activity had been having a major effect on the economy in that state
  • both unemployment and underemployment were expected to remain high for an extended period
  • recovery was likely to be slow and uneven, and inflation was expected to remain subdued for some time
  • addressing the high rate of unemployment an important national priority
  • board agreed to place more weight on actual, not forecast, inflation in its decision-making
  • Australian banking system, with its strong capital and liquidity buffers, had remained resilient and was helping the economy traverse the current difficult period
  • bank stood ready to purchase government securities in the event of a recurrence of market dysfunction
  • members recognised that the substantial, coordinated and unprecedented easing of fiscal and monetary policy in Australia was helping to sustain the economy
  • public sector balance sheets in Australia were strong, which allowed for the provision of continued support
  • members considered that fiscal and monetary support would be required for some time given the outlook for the economy and the prospect of high unemployment
  • board discussed the case for additional monetary easing to support jobs and the overall economy
  • members noted that larger balance sheet expansions by other central banks relative to the reserve bank was contributing to lower sovereign yields in most other advanced economies
  • members discussed the implications of this for the Australian dollar exchange rate.
  • members discussed the options of reducing the targets for the cash rate and the 3-year yield towards zero, without going negative, and buying government bonds further along the yield curve
  • these options would have the effect of further easing financial conditions in Australia
  • members discussed the options of reducing the targets for the cash rate and the 3-year yield towards zero, without going negative
  • in considering the case for further monetary measures, members discussed monetary policy developments abroad and their implications for financial conditions in Australia
  • discussed buying government bonds further along the yield curve

Headlines via Reuters, bolding of a some of them is mine. Underlining too.