RBA on Track for Major Policy Announcement in July
By James Glynn
SYDNEY–The Reserve Bank of Australia remained dovish in its guidance to financial markets at its board meeting Tuesday, but stayed on track to potentially announce major changes to its policy approach in July against the backdrop of an economy that continues to heat up.
The RBA left its official cash rate and its target for three-year government bonds at 0.10%, retaining its guidance that official interest rates won’t be raised until 2024 at the earliest.
“Progress in reducing unemployment has been faster than expected…there are reports of labor shortages in some parts of the economy. Despite the strong recovery in the economy and jobs, inflation and wage pressures are subdued,” RBA Governor Philip Lowe said in a statement accompanying the decision.
While the RBA remained unmoved in its narrative to markets, it will announce key changes to…