At its meeting today, the Board of the Reserve Bank of Australia have decided to maintain the targets of 10 basis points for the cash rate and the yield on the 3-year Australian Government bond, as well as the parameters of the Term Funding Facility.

• The outlook for the global economy has improved over recent months due to the development of vaccines. While the path ahead is likely to remain bumpy and uneven, there are better prospects for a sustained recovery than there were a few months ago.
• In Australia, the economic recovery is well under way and has been stronger than was earlier expected. There has been strong growth in employment and a welcome decline in the unemployment rate to 6.6 per cent.
• The recovery is expected to continue, with the central scenario being for GDP to grow by 3½ per cent over both 2021 and 2022.

The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range.

To view the full statement of Philip Lowe, Governor of the Reserve Bank, please click here.

Published : 02 Feb 2021