At its meeting today, the Board of the Reserve Bank of Australia have decided to maintain the cash rate target at 10 basis points and the interest rate on Exchange Settlement balances at zero per cent.

• The Delta outbreak has interrupted the recovery of the Australian economy and GDP is expected to have declined materially in the September quarter.
• Housing prices are continuing to rise, although turnover in some markets has declined following the virus outbreak.
• The Bank’s package of policies – including record low interest rates, the bond purchase program, the yield target and the funding provided under the Term Funding Facility – is providing substantial and ongoing support to the Australian economy.

The Board is committed to maintaining highly supportive monetary conditions to achieve a return to full employment in Australia and inflation consistent with the target.

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

Published : 05 Oct 2021