James Morley

It will be important for the RBA to focus on bringing various measures of inflation expectations back up into the 2-3% target range and not be distracted by calls to use contractionary monetary policy to address movements in house prices (some of which may reflect an increased likelihood of at least partial work-from-home in many sectors and less travel even beyond the Covid crisis) or to worry too much about transitory (rather than sustained) movements in measured inflation. Given this, a continued commitment to maintain low interest rates until inflation and inflation expectations remain persistently within the target range and noting that this timeframe is expected to be at least 3 years is highly appropriate. It is worth noting that break-even inflation for United States has recently returned back above 2%, so it should be possible that this will happen for Australia too given clear and deliberate policy communications.

Outcome date: 
Monday 01 February 2021
Current rate: 
12 months: 
6 months: 
3 Years: 

Updated:  1 March 2021/Responsible Officer:  Crawford Engagement/Page Contact:  CAMA admin