Reserve Bank of Australia Statement on Monetary Policy (SoMP) August 2020

  • Says the Australian dollar is in a range broadly consistent with its fundamentals

Headlines via Reuters

  • says board will not increase the cash rate target until progress is being made towards full employment, inflation target
  • forecasts y/y GDP at -6% for June, -6% for December, +5% Dec. 2021, +4% Dec. 2022
  • says board is committed to doing what it can to support jobs, incomes and businesses
  • forecasts unemployment 10% for Dec, 8.5% Dec 2021, 7% Dec 2022
  • forecasts CPI +1.25% for Dec, +1% Dec 2021, +1.5% Dec 2022
  • says further purchases of Australia govt bonds will be undertaken as necessary in secondary market
  • forecasts trimmed mean inflation +1% for Dec, +1% Dec 2021, +1.5% Dec 2022
  • says monetary financing of budget deficits is not an option under consideration in Australia
  • says forecasts assume cash rate, three yr yields target remain at current levels
  • says given the nature of the challenges posed by the pandemic, there was no need to adjust the mid-March package
  • says board has, however, not ruled out adjusting this package in the future if circumstances warranted
  • says a gradual recovery in GDP is now underway across much of the country
  • says board continues to view negative interest rates as being extraordinary unlikely in Australia
  • says heightened activity restrictions in Victoria are likely to offset the pick-up in GDP
  • says the Australian dollar is now in a range that is broadly consistent with its fundamental determinants
  • says Victoria restrictions likely to reduce q3 GDP growth by at least 2 percentage points
  • says the pace of Australia's economic recovery is expected to be slower than previously forecast
  • says the measures taken to address the current outbreak in Victoria state will further delay the recovery

Also:

As part of its review, the Board also discussed experience with a range of other possible monetary measures, including foreign exchange intervention and negative interest rates.

Both were rejected.

Bolding above is mine

Full text:

RBA Governor Lowe:

Reserve Bank of Australia Statement on Monetary Policy (SoMP) August 2020