RBA board had reaffirmed its cash rate target at 0.25% and the target for three-year yields at 0.25% recognising that RBA’s policy package was working as per expectations. The board noted that
- RBA actions were keeping funding costs low and encouraging credit flow to households and businesses.
- Movements in the Australian dollar over the course of 2020 had been strongly correlated with global equity prices.
- commodity prices and interest rate differentials between Australia and other advanced economies had risen in the recent period
RBA intends to maintain an accommodative approach noting that substantial, coordinated and unprecedented easing of fiscal and monetary policy was helping the economy. RBA also pledged to backing jobs, incomes and businesses so that Australia is well positioned for economic recovery.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
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