Reserve Bank of Australia decided to maintain the current policy settings, including the targets of:

  • 10 basis points for the cash rate and the yield on the 3-year Australian Government bond,
  • and the parameters of the Term Funding Facility and bond purchase program

More:

  • board does not expect tight labour market, high wages growth until 2024 at the earliest
  • says Australia economic recovery well underway, stronger than was earlier expected
  • says "significant gains" in employment and a return to a tight labour market is required to meet goals
  • wages growth will have to be materially higher than it is currently
  • remains committed to maintaining highly supportive monetary conditions until its goals are achieved
  • says economy is still operating with considerable spare capacity
  • says board will not increase the cash rate until actual inflation is sustainably within the 2-3% target range
  • committed to the 3-year yield target and recently purchased bonds to support the target and will continue to do so as necessary
  • bond purchases under the bond purchase program were brought forward this week to assist with the smooth functioning of the market
  • monetary policy settings help the economy by keeping financing costs very low, contributing to a lower exchange rate than otherwise
  • bank is prepared to make further adjustments to its purchases in response to market conditions
  • housing credit growth to owner-occupiers has picked up, but investor and business credit growth remain weak
  • lending standards remain sound
  • says since the start of 2020, the RBA's balance sheet has increased by around A$175 billion
  • says together, monetary and fiscal policy are supporting the recovery in aggregate demand and the pick-up in employment

Full text: Statement by Philip Lowe, Governor: Monetary Policy Decision

There is nothing here to surprise, no rate hike until the dual mandate is achieved, i.e. full employment and 2 - 3% inflation. RBA thinks this is 3 years away at least, 2024. The RBA also reaffirmed it'll be aggressive to manage government bond yields, referring to the action they took only yetsreday in doubling their bond buy amount in the market.