RBA November minutes: Repeats no hike to cash rate until wage & inflation criteria are met

Reserve Bank of Australia November 2021 monetary policy meeting minutes 

Headlines via Reuters 

  •  economy expected to bounce back quickly as restrictions are eased
    further
  • remained committed to maintaining highly supportive monetary
    conditions
  • further pick-up in underlying inflation was expected, but it would be
    only gradual
  • board will not raise the cash rate until wage and inflation criteria
    are met
  • members acknowledged that the risks to the inflation forecast had
    changed
  • main uncertainties related to the persistence of the current
    disruptions to global supply chains and to the behaviour of wages
  • central scenario for the economy continued to be consistent with the
    cash rate remaining at its current level until 2024

The RBA is being very patient in waiting for wage growth to accelerate. Until it does, the Bank will be just as patient with holding the cash rate unchanged. It suspects until 2024 at least,. according to their ‘central scenario’. None of this is new from the Bank. What was new at this meeting was at least an acknowledgement that if conditions warrant a hike earlier then it’ll be done, perhaps in 2023 was, reluctantly, conceded. 

Full text: 
Reserve Bank of Australia November 2021 monetary policy meeting minutes 
Invest in yourself. See our forex education hub.

LEAVE A COMMENT

Your email address will not be published. Required fields are marked *