RBA's Lowe: RBA to maintain policy support until employment, inflation goals met

The Reserve Bank of Australia's governor Philip Lowe said on Monday that the central bank is doing what it can to support the country's economic recovery from the coronavirus pandemic and will maintain policy settings until it meets its employment and inflation goals,

"The challenges facing us all are large," Lowe said in a speech in Melbourne. "At the Reserve Bank, we are seeking to support the economic recovery and a stronger labour market that is consistent with achieving the inflation target."

Key notes

• RESERVE BANK OF AUSTRALIA GOV LOWE: AS A NATION, WE HAVE RESPONDED VERY WELL TO THE PANDEMIC
• 14-Mar-2021 17:15:46 - RBA GOV LOWE: GOVERNMENTS ALSO RESPONDED QUICKLY AND DECISIVELY
• 14-Mar-2021 17:15:56 - RBA GOV LOWE: THE RESULT HAS BEEN A QUICKER AND STRONGER ECONOMIC RECOVERY THAN WAS EXPECTED
• 14-Mar-2021 17:16:03 - RBA GOV LOWE: THIS, HOWEVER, DOES NOT HIDE THE FACT THAT WE STILL HAVE A LONG WAY TO GO
• 14-Mar-2021 17:16:13 - RBA GOV LOWE: WHILE WE ARE EXPECTING FURTHER PROGRESS TO BE MADE TOWARDS FULL EMPLOYMENT AND THE INFLATION TARGET, IT IS GOING TO TAKE SOME TIME BEFORE WE REACH OUR GOALS
• 14-Mar-2021 17:16:20 - RBA GOV LOWE: ONE PIECE OF THE RECOVERY THAT IS YET TO CLICK INTO GEAR IS BUSINESS INVESTMENT
• 14-Mar-2021 17:17:15 - RBA GOV LOWE: RBA IS DOING WHAT IT CAN TO SUPPORT THE RECOVERY FROM THE PANDEMIC
• 14-Mar-2021 17:17:26 - RBA GOV LOWE: RBA WILL MAINTAIN THAT SUPPORT UNTIL WE HAVE ACHIEVED OUR GOALS FOR FULL EMPLOYMENT AND INFLATION.

Market implications

 The RBA recently left its cash rate at a record low 0.1% and re-committed to its three-year yield target and has communicated forward guidance that has been priced into the currency. There was no reaction from the market to these additional comments.