AUD - RBA minutes (Sept. meeting) - will consider how further easing could support the economy

Author: Eamonn Sheridan | Category: Central Banks

Minutes of the Reserve Bank of Australia monetary policy meeting September 2020.


  • The Board reaffirmed that it would not increase the cash rate target until progress is made towards full employment, inflation  
  • members noted that the downturn had not been as severe as earlier expected and a recovery was underway in most of Australia  
  • Board agreed to maintain highly accommodative settings as long as required  
  • recovery was likely to be uneven, with the  COVID-19 outbreak in Victoria having a major effect on the economy  
  • wage and price pressures remained subdued and this was likely to continue for some time  
  • board will continue to consider how further monetary measures could support the recovery  
  • Australian banking system, with its strong capital and liquidity buffers, had remained resilient  
  • members noted that public sector balance sheets in Australia were strong, which allowed for the provision of continued support  
  • government bond markets had been operating effectively, alongside a significant increase in issuance  
  • members considered it likely that fiscal and monetary support would be required for some time  
  • government bond markets had been operating effectively, alongside a significant increase in issuance  
  • the bank stood ready to purchase ags and semi-government securities in the event of a recurrence of market dysfunction  
  • demand for business loans had remained subdued, reflecting the weakness in economic conditions and the high level of uncertainty  
  • supply of credit had also tightened somewhat since earlier in the year, reflecting the uncertain economic outlook
Headlines via Reuters, any bolding is mine.

The minutes also have the Board noting a lower AUD would provide more assistance to economic recovery.

(AUD responds by going up ;-) )


Full text: 
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