The Reserve Bank of Australia remains committed to maintain highly supportive monetary conditions as the policy settings help to return to full employment and inflation consistent with the target, Assistant Governor Luci Ellis, said Wednesday.
At the height of the coronavirus pandemic, the task for policy is to build a bridge to the recovery, Ellis said in a speech to the Ai Group.
As economies move through recovery to the expansion phase, the focus naturally turns to sustaining that expansion, the banker noted. Absorbing spare capacity and achieving full employment is an important national priority.
Full employment is also a precondition for achieving the rates of wages growth that would be consistent with inflation being sustainably within the 2-3 percent target range that the RBA is mandated to achieve, said Ellis.