Monetary Policy As I have indicated in recent speeches, monetary policy at this juncture needs to be especially data dependent, with the federal funds rate now in the range of Federal Open Market Committee (FOMC) participants' estimates of its longer-run neutral level.
As I hope you are aware, the Reserve Bank’s monetary policy framework is centred on the inflation target, but the ultimate objective of our policies is to promote the collective economic prosperity of the people of Australia. In the Board’s judgement, the easing of monetary policy last month and this month will help promote our collective welfare.