RBA: Inflation has picked up and a further increase is expected

Following are the key headlines from the April RBA monetary policy statement, via Reuters, as presented by Governor Phillip Lowe.

Will assess incoming information as its sets policy to support full employment in Australia and inflation outcomes consistent with the target.

Central forecast is for the unemployment rate to fall to below 4 per cent this year and to remain below 4 per cent next year.

Inflation has picked up and a further increase is expected.

Wages growth has picked up, but, at the aggregate level, is only around the relatively low rates prevailing before the pandemic.

Given the tightness of the labor market, a further pick-up in aggregate wages growth and broader measures of labour costs is in prospect.

Growth in labor costs has been below rates that are likely to be consistent with inflation being sustainably at target.

more to come ...

About RBA rate decision

RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.