Employment a key national priority for Reserve Bank of Australia

The Australian central bank is committed to maintaining a monetary policy that will support the country’s employment and inflation goals.
By: | June 25, 2021

Absorbing spare labour market capacity and achieving full employment are important national priorities, said Reserve Bank of Australia (RBA) Assistant Governor Luci Ellis.

“Full employment is a worthy goal for its own sake, given how important jobs and income are for people’s welfare,” Ellis said in a speech. 

“It is also a precondition for achieving the rates of wages growth that would be consistent with inflation being sustainably within the 2% to 3% target range that the Bank is mandated to achieve.”

RBA is committed to maintaining a monetary policy that will support these employment and inflation goals, he added. 

Australia’s central bank has repeatedly said that it will not raise interest rates from the current 0.1% until actual inflation is within sustainable levels of its target band. 

Another reason to support demand is to support structural changes that might be needed in a post-pandemic world, noted Ellis. 

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“For all these reasons, the Board remains committed to maintaining highly supporting monetary conditions. The aim of these policy settings is to support a return to full employment and inflation consistent with the target.”