The board said that they will not increase the cash rate target until progress is being made towards full employment and remains confident that inflation will be within the 2–3% target.
Also, the bank targets the yield on 3-year Government bonds of around 0.25% that will be achieved through purchases in the secondary market, starting Friday.
Policymakers agreed to launch a 3-year funding facility for the banking system of at least AUD 90 billion, with particular support for credit to SMEs at a fixed rate of 0.25%.
The Committee added that the exchange settlement balances at the bank will be remunerated at 10bps, rather than 0. The RBA will continue to provide liquidity to financial markets by conducting 1-month and 3-month repo operations until further notice.