The RBA said it would buy A $4 billion of government securities a week, down from the current A $5 billion a week. The RBA left its target for key interest rates and three-year bond yields unchanged at 0.10% on Tuesday. Philip Lowe, chairman of the RBA, said in a statement after the September policy meeting:
"the MPC decided to buy A $4 billion of bonds a week until at least February 2022, reflecting delays in economic recovery and increased uncertainty associated with the Delta outbreak," it said. "the committee is committed to maintaining a highly supportive monetary environment to restore full employment and to ensure that inflation is in line with targets," it said. The central bank will not raise cash rates until real inflation remains within the target range of 2% to 3%. "
"the core scenario of the economy is that this condition will not be met before 2024," the statement said. To meet this condition, the labour market will need to be tight enough for wage growth to be much higher than the current level. "
