Lowe Adds Some Colour Re: Review

RBA Governor Lowe confirms that the Bank will review its policy framework in '22, including its experience with policy measures deployed in the wake of the COVID-19 outbreak.

• A reminder that the November minutes noted the following:
• "Members saw merit in reviewing the operation of the yield target and its effectiveness as part of the broader package of monetary policy measures introduced in March 2020. This would be done in 2022 and in light of additional information on the effect of the overall policy package on the Bank's goals."
• "Members then discussed the bond purchase program. The Board reaffirmed its previous decision to continue with the program at the current rate of purchases until mid February 2022, when the program will be reviewed again. Members agreed that continuation of the program was appropriate to support the financial conditions that underpinned the central forecast scenario for inflation and unemployment. The Board's review of the program in February 2022 will be based on the same three considerations as the previous reviews – namely, the actions of other central banks, how the domestic bond market is functioning, and the actual and expected progress towards the Bank's goals for inflation and unemployment."