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- Australia economic activity, employment to decline in the 3rd quarter - RBA minutes
Australia economic activity, employment to decline in the 3rd quarter - RBA minutes
RTTNews reports that policymakers of the Reserve Bank of Australia said the economic activity and employment were expected to decline in the September quarter as the high transmissibility of the Delta variant raised the possibility of a more gradual reopening.
Nonetheless, members expect the economy to rebound from the current setback later in the year as restrictions are eased, consistent with the previously observed pattern in Australia and overseas.
The current virus outbreaks and lockdowns had interrupted the recovery and many households and businesses were facing difficult conditions, the minutes said. Members therefore considered the case for delaying the tapering of bond purchases to A$4 billion a week currently scheduled for September 2021.
The board repeated that it will not increase the cash rate until actual inflation is sustainably within the 2 to 3 percent target range. The central scenario for the economy is that this condition will not be met before 2024, the board observed.
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