RBA leaves cash rate unchanged at 0.10% in April monetary policy decision

Latest monetary policy decision by the RBA – 6 April 2021

  • Prior 0.10%
  • 3-year bond yields target 0.10%
  • RBA to later in the year consider whether to retain the April 2024 bond as the target bond or to shift to the next maturity
  • Rollout of vaccines is supporting the recovery of the global economy
  • Recovery remains uneven, there are still uncertainties to the outlook
  • Australian economic recovery is well under way and stronger than expected
  • Wage, price pressures are subdued and expected to remain so for some years
  • Underlying inflation is expected to remain below 2% over the next few years
  • RBA prepared to undertake further bond purchases if necessary
  • RBA will not increase cash rate until inflation hits target range of 2% to 3%
  • Does not expect such conditions to be met until 2024 at the earliest
  • Full statement

With the RBA not tweaking its yield curve control target away from April 2024 bonds, there is pretty much nothing here that stands out. The commentary on the economy remains slightly upbeat, as it was in March as well.

In terms of key policy language, nothing has changed. So, as you were.

AUD/USD little changed on the announcement, keeping at 0.7645 currently.

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