With the economy proving more resilient to the pandemic and vaccines rolling out, we are hopeful there will be less labour-market scarring and less lost capacity than we earlier feared. Bankruptcies have been low, and surveys of investment intentions and our own Business Outlook Survey both suggest that many companies are speeding up investments in digital technologies.
The RBA’s job, as Australia’s central bank, is to deliver low and stable inflation. The Board is resolute in its determination to do this by making sure that inflation in Australia returns to the 2–3 per cent target range.