The Reserve Bank of Australia (RBA) decided to leave the cash rate unchanged at 0.1 percent at its September monetary policy meeting. The move was widely expected by the markets. In addition, the 3-year bond yields target was maintained at 0.1 percent, while the bond purchases at $4 billion a week were extended until at least February 2022.

In a statement on the RBA's latest policy decision, its governor Philip Lowe noted:

• Recovery in Australian economy has been interrupted by Delta outbreak and the associated restrictions on activity;
• GDP is expected to decline materially in the September quarter and unemployment rate will move higher over coming months;
• This setback to economic expansion is expected to be only temporary; Delta outbreak is expected to delay, but not derail, recovery;
• There is, however, uncertainty about timing and pace of this bounce-back and it is likely to be slower than that earlier in the year… In our central scenario, economy will be growing again in December quarter and is expected to be back around its pre-Delta path in H2 2022;
• Board's decision to extend bond purchases at $4 billion a week until at least February 2022 reflects delay in economic recovery and increased uncertainty associated with Delta outbreak;
• Board will continue to review bond purchase program in light of economic conditions and health situation, and their implications for the expected progress towards full employment and the inflation target;
• Board is committed to maintaining highly supportive monetary conditions to achieve return to full employment in Australia and inflation consistent with target. It will not increase cash rate until actual inflation is sustainably within the 2-3% target range;
• Central scenario for economy is that this condition will not be met before 2024. Meeting this condition will require labour market to be tight enough to generate wages growth that is materially higher than it is currently