Via the RBA Minutes:
Considerations for monetary policy
In considering the policy decision, members observed that the global economic recovery from the pandemic had continued and the outlook was for strong growth in output in 2021 and the following year. Policy settings and the pace of COVID-19 vaccinations had supported global economic activity, but the recovery remained uneven and the virus had not yet been contained in some countries. Global goods trade had continued to increase strongly and commodity prices remained at higher levels than at the beginning of 2021. Despite the more positive real economic conditions, wages growth and inflation in underlying terms remained low.
Sovereign bond yields had been steady in recent months, after rising earlier in the year in response to the positive news on vaccines and the additional sizeable fiscal stimulus in the United States. Medium-term inflation expectations had increased from around record lows to be closer to central banks’ inflation targets. Central banks in major advanced economies had continued to signal that higher inflation would be temporary and restated guidance that they would continue to provide significant monetary policy support until there was evidence of substantial progress towards their goals for employment and inflation.
