At RBA meeting on 2 March 2021, Monetary Policy Decision was to maintain the cash rate and 3-year Australian Government bond at 0.10%.
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Due to the COVID-19 vaccine roll out, the global economic outlook is looking better than it was a few months ago while higher U.S longer-term bond yields have been noticed.
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Australia's economy is recovering faster than expected. While employment rate is improving, the unemployment rate is decreasing, and retail spending is stronger than it was many months ago. Australia's GDP is expected to recover to its pre COVID-19 level by the end of this financial year. Due to low lending rates, the housing prices have strongly increased over the past few months. Australian dollar is within the higher range versus US dollar since the recovery after COVID-19.
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Although the recovery is still ongoing and depends on the COVID-19 situation, the Australian economy is seen to have a sustainable improvement and its current monetary policy is designed to assist the economy in recovery.
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Source: RBA (March 2021)
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