RBA June 2020 Decision - Rates Maintained

The RBA has released the Monetary Policy Decision statement by Phillip Lowe:

At its meeting today, the Board decided to maintain the current policy settings, including the targets for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points.

…

The substantial, coordinated and unprecedented easing of fiscal and monetary policy in Australia is helping the economy through this difficult period. It is likely that this fiscal and monetary support will be required for some time.

The Board is committed to do what it can to support jobs, incomes and businesses and to make sure that Australia is well placed for the recovery. Its actions are keeping funding costs low and supporting the supply of credit to households and businesses. This accommodative approach will be maintained as long as it is required. The Board will not increase the cash rate target until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2–3 per cent target band.

Rates have been maintained at 0.25%. The RBA refers to our economic recovery as being highly uncertain. They don’t want to increase rates in order to support the economy but as they’ve mentioned in the past, they don’t want to drop rates any further. So unless something unexpected occurs, it sounds like rates will neither increase nor decrease in the near future.