The Reserve Bank of Australia (RBA), the Central Bank of Australia released the minutes of its April meeting today. Despite that its economic recovery has surpassed all expectations with an “above-trend” expansion likely this year and next, the country’s central bank is still in no hurry to tighten policy settings, minutes of its April policy meeting showed.
The board of RBA decided to remain a target for the cash rate of 0.1 per cent for “as long as necessary”. The minutes showed the RBA would maintain this supportive policy stance until actual inflation is sustainably within its 2-3% target range, a goal it does not expect to meet before 2024. The RBA has recently said the unemployment rate needs to be in the “low 4s” or “high 3s” to generate wage and price pressures, from 5.6% now.
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