The Reserve Bank has held official interest rates steady and remained committed to its gradual wind back of its quantitative easing program as it waits on large parts of the economy to re-open from COVID-19 lockdown.
“Looking forward, the bank’s business liaison and data on job vacancies suggest that many firms are seeking to hire workers ahead of the expected reopening in October and November,” he said. “While disruptions to global supply chains are affecting the prices of some goods, the impact of this on the overall rate of inflation remains limited,” he said.Dr Lowe said while prices were continuing to rise, turnover in some markets had started to decline.The Council of Financial Regulators, which includes the RBA and the Australian Prudential Regulation Authority, had been discussing the medium-term risks to macroeconomic stability.
“It will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. The central scenario for the economy is that this condition will not be met before 2024.”The decision came after the latest ANZ measure of job advertisements fell by 2.8 per cent in September, the third consecutive monthly drop.
swrighteconomy This is mad. It’s only making the cost of housing to go up and when rates go up again the houses will be cheaper as there will be more on the market.
swrighteconomy RBA is still clueless.
swrighteconomy Inflation is coming