The RBA Statement on Monetary Policy has been released.

The Reserve Bank of Australia will not raise the cash rate until these criteria are met and is prepared to be patient.

The RBA Statement on Monetary Policy also says for inflation to be between 2 and 3% on a sustainable basis.

It sates that the labour market will need to be tighter and wages growth materially higher

The RBA says the board will not raise the cash rate until these criteria are met, and is prepared to be patient

The RBA says very low interest rates have also supported asset prices, which has strengthened the balance sheets of firms and households.

The RBA says how much consumption responds to higher household wealth is a key uncertainty for the outlook.

The RBA says with the economy now opening up, the solid momentum evident before the delta outbreak is expected to resume.

AUD/USD reaction 

The price of AUD/USD is a touch softer on the release of the statement and is trading at fresh lows for the session at 0.7392 and towards the lows made in the New York session in 0.7382. 

About the SoMP

The RBA Monetary Policy Statement released by the Reserve bank of Australia reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.

It is considered as a clear guide to the future RBA interest rate policy. Any changes in this report affect the AUD volatility. If the RBA statement shows a hawkish outlook, that is seen as positive (or bullish) for the AUD, while a dovish outlook is seen as negatvie (or bearish).