RBA announces their latest monetary policy decision - 1 September 2020
- Prior 0.25%
- Maintains 0.25% target on 3-year bond yields
- Target will remain in place until progress made on employment, inflation
- Increases size of term funding facility, make facility available for longer
- Accommodative approach will be maintained for as long as required
- Continues to consider how further measures could further support recovery
- Will undertake further purchases of government bonds as necessary
- Likely to be some months before observing a meaningful labour market recovery
- Economic recovery likely to be both uneven and bumpy
- Downturn not as severe as earlier expected, recovery underway in most of Australia
Pretty much a non-event, besides the RBA deciding to extend its term funding facility to make it easier for banks to access more funds for longer. But that fits within the approach of most central banks these days of doing what is necessary to sustain the recovery.
Besides that, there is some acknowledgment for the rising AUD/USD but they certainly did not offer any offending remarks for the aussie currency in general:
The US dollar has depreciated against most currencies over recent months. Given this and higher commodity prices, the Australian dollar has appreciated, to be around its highest level in nearly two years.
AUD/USD remains little changed on the day at 0.7405 currently.
