RBA Minutes: September Meeting: Supporting The Task Ahead

Good afternoon

The key points in the release are:

  • The Reserve Bank (RBA) released the minutes of its September policy meeting today.
  • There was an acute awareness of the seriousness of the task ahead and the difficulties faced by households and businesses in Australia and around the world.
  • Health solutions were noted as the ‘end-game’ for recovery but, in the meantime, for Australia, it was incumbent upon the RBA, the government and the financial sector provide support where it could.
  • A concern for the RBA was the very weak outlook for capital expenditure in Australia. It also noted the impact of a reduced flow of migrants and a decline in household formation on the housing sector.
  • Some recovery in global activity was noted but renewed restrictions in some countries had slowed momentum.
  • In order to maintain a low interest rate environment, the RBA had purchased close to $10 billion of Australia Government Securities (AGS) in August. The RBA stands ready purchase further AGS to maintain its targets.
  • Given that recovery is expected to take time, the RBA extended and expanded its Term Funding Facility (TFF) with an eye to ultimately making credit more easily available to small and medium sized enterprises.
  • The RBA will maintain accommodative monetary policy for as long as required. It is also prepared to consider further monetary measures that could support the recovery. We believe such measures could include a reduction in the cash rate to 0.10%, a lower target for three-year AGS yields or possibly moving its target further along the yield curve to 5 or even 10-year maturities.


Please refer to the attached report for more information.



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