RBA: Accommodative approach will be maintained as long as it is required

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

Committed to do what it can to support jobs, incomes and business

Global outlook remains uncertain

Target will remain in place until progress made towards goals for full employment, inflation

Likely that fiscal and monetary support will be required for some time

Bank's mid-march package of support for the Australian economy is working as expected

Inflation is expected to average between 1 and 1½ per cent over the next couple of years

Inflation is expected to return to positive territory in the current quarter

Will purchase gov't bonds in the secondary market on wednesday to ensure that the yield on 3-year bonds

Australian economy going through a very difficult period; experiencing biggest contraction since the 1930s

Government's recent announcement that various income support measures will be extended is a welcome development

Ownturn is not as severe as earlier expected and a recovery is now underway in most of Australia

Recovery is, however, likely to be both uneven and bumpy, with the coronavirus outbreak in Victoria

In its baseline scenario for GDP growth, output falls by 6% over 2020 and then grows by 5% over the following year