Australian Treasurer Frydenberg: Govt maintains RBA's 2-3% inflation target

In Tuesday’s edition of the Australian Financial Review (AFR), the Australian Treasurer Josh Frydenberg wrote that his government has decided to maintain the framework governing how the Reserve Bank of Australia (RBA) sets monetary policy against the backdrop of global uncertainty.

Key Quotes:

Not changing the statement provides continuity and consistency at this time of global economic uncertainty.

Domestic and global markets can be reassured that Australia remains a stable and predictable place to invest and do business with a proven and effective monetary policy framework.

Rules out requiring the RBA governor to explain any undershooting or overshooting of the inflation target in a letter to the treasurer, as is required of the governor of the Bank of England.

In three-quarters of the world’s advanced economies, headline inflation was under 2% and in one-third it was below 1%.

This comes ahead of the RBA interest rate decision due on Tuesday at 0330 GMT. Meanwhile, the AUD/USD pair is seen consolidating the recent slide from 0.6926 levels amid broad-based US dollar rebound. At the press time, the spot hovers near 0.6880 region, almost unchanged on the day.