RBA: Economic recovery is well under way, stronger than had been expected

Following are the key headlines from the March RBA monetary policy statement, via Reuters, as presented by Governor Phillip Lowe.

Board does not expect employment, inflation goals will be met until 2024 at the earliest.

Board will not increase cash rate until actual inflation is sustainably within the 2-3% target range.

Board remains committed to maintaining highly supportive monetary conditions until its goals are achieved.

Australian dollar remains in the upper end of the range of recent years.

Bank remains committed to the 3-year yield target of 10 bps.

Economic recovery in Australia is well under way and is stronger than had been expected.

Housing markets have strengthened further.

Housing credit growth to owner-occupiers has picked up, with strong demand from first-home buyers.

Expects above-trend growth this year and next.

Investor credit growth remains subdued.

Wage and price pressures are subdued and are expected to remain so for some years.

The bank will be monitoring trends in housing borrowing carefully and it is important that lending standards are maintained.

Later in the year will consider whether to retain the April 2024 bond as the target bond or to shift to the next maturity.