RBA: BOARD EXPECTS THAT SOME FURTHER TIGHTENING OF MONETARY POLICY MAY WELL BE NEEDED

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Following are the key headlines from the Reserve Bank of Australia’s (RBA) April monetary policy statement, via Reuters, as presented by Governor Phillip Lowe.

EXPECTS THAT SOME FURTHER TIGHTENING OF MONETARY POLICY MAY WELL BE NEEDED

BOARD RECOGNISES THAT MONETARY POLICY OPERATES WITH A LAG AND THAT THE FULL EFFECT OF THIS SUBSTANTIAL INCREASE IN INTEREST RATES IS YET TO BE FELT.

BOARD REMAINS RESOLUTE IN ITS DETERMINATION TO RETURN INFLATION TO TARGET AND WILL DO WHAT IS NECESSARY TO ACHIEVE THAT

BOARD TOOK THE DECISION TO HOLD INTEREST RATES STEADY THIS MONTH TO PROVIDE ADDITIONAL TIME TO ASSESS THE IMPACT OF THE INCREASE IN INTEREST RATES TO DATE AND THE ECONOMIC OUTLOOK.

PATH TO ACHIEVING A SOFT LANDING REMAINS A NARROW ONE

AUSTRALIAN BANKING SYSTEM IS STRONG, WELL CAPITALISED AND HIGHLY LIQUID.

WAGES GROWTH IS CONTINUING TO INCREASE IN RESPONSE TO THE TIGHT LABOUR MARKET AND HIGHER INFLATION

BOARD REMAINS ALERT TO THE RISK OF A PRICES-WAGES SPIRAL

INFLATION HAS PEAKED IN AUSTRALIA, GOODS PRICE INFLATION IS EXPECTED TO MODERATE OVER THE MONTHS AHEAD

LABOUR MARKET REMAINS VERY TIGHT

AS ECONOMIC GROWTH SLOWS, UNEMPLOYMENT IS EXPECTED TO INCREASE

GROWTH IN THE AUSTRALIAN ECONOMY HAS SLOWED,

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