RBA Minutes: Policy would need to remain highly accommodative to reach full employment
The minutes of the June 2021 Monetary Policy Meeting of the Reserve Bank have been released.
traders were looking for any anticipation about where the discussion about tweaking QE in July is heading.
RBA minutes
- RBA MINUTES: BOARD AGREED IT WOULD BE "PREMATURE TO CONSIDER CEASING" THE BOND BUYING PROGRAMME
- 14-Jun-2021 19:29:57 - RBA: POLICY WOULD NEED TO REMAIN HIGHLY ACCOMMODATIVE TO REACH FULL EMPLOYMENT
- 14-Jun-2021 19:29:57 - RBA: BOND BUYING UNDERPINNED ACCOMMODATIVE CONDITIONS NECESSARY FOR ECONOMIC RECOVERY
- 14-Jun-2021 19:29:57 - RBA: RETURN TO A TIGHT LABOUR MARKET, ACTUAL INFLATION IN TARGET BAND UNLIKELY UNTIL 2024 AT EARLIEST
- 14-Jun-2021 19:29:57 - RBA: OPTIONS FOR BOND PROGRAMME INCLUDED ANOTHER ROUND OF A$100 BLN, SCALING BACK PURCHASES, SPREADING THEM OUT
- 14-Jun-2021 19:29:57 - RBA: ALSO DISCUSSED APPROACH OF REVIEWING BOND PURCHASES MORE FREQUENTLY DEPENDING ON FLOW OF DATA
- 14-Jun-2021 19:29:57 - RBA: AUSTRALIAN ECONOMY TRANSITIONING FROM RECOVERY TO EXPANSION
- 14-Jun-2021 19:29:57 - RBA: ANNUAL WAGE GROWTH WOULD NEED TO BE SUSTAINABLY ABOVE 3% FOR INFLATION TO REACH TARGET
- 14-Jun-2021 19:29:57 - RBA: MEMBERS EXPECTED ONLY GRADUAL PICK UP IN WAGES GROWTH OVER FOLLOWING FEW YEARS
- 14-Jun-2021 19:29:57 - RBA: POSSIBLE PARTICIPATION RATE COULD RISE FURTHER, STILL A POOL OF WORKERS AVAILABLE
- 14-Jun-2021 19:29:57 - RBA: LIAISON SHOWED SOME FIRMS FAVOURED NON-WAGE MEASURES TO ATTRACT LABOUR, OR TO RATION OUTPUT
- 14-Jun-2021 19:29:57 - RBA: HOUSEHOLD SPENDING TO BE STRONG, SUPPORTED BY RISING WEALTH, EMPLOYMENT AND LOWER UNCERTAINTY
- 14-Jun-2021 19:29:57 - RBA: A$ IN NARROW RANGE DESPITE SIGNIFICANT INCREASES IN SOME COMMODITY PRICES
- 14-Jun-2021 19:29:57 - RBA: MONETARY POLICY HAD CONTRIBUTED TO A$ BEING LOWER THAN OTHERWISE
- 14-Jun-2021 19:29:57 - RBA BOARD DISCUSSED CLIMATE CHANGE, ITS IMPACT ON COST AND AVAILABILITY OF FUNDING IN AUSTRALIA
AUD/USD is softer on the relese.
More to come...
Thursday’s jobs data for the month of May in Australia will be a more important event this week ahead of the 9 July Reserve Bank of Australia meeting.
A solid headline print if say, 45k, which is likely above consensus along with a drop in the Unemployment Rate from 5.5% to 5.4% or lower would be highly encouraging and potentially see the RBA make changes to the shape and/or size of the QE will be unveiled as it brightens the inflation outlook for 2Q after the underwhelming 1Q read.
The RBA Governor, Philip Lowe, will also deliver a speech on Thursday.
However, he is scheduled to speak before the release of the jobs report so there may not be any relevant policy comments.