Minutes of the Reserve Bank of Australia August meeting

  • Where they cut rates by 25 bp to 1.75%
  • Since the minutes we have had the latest Statement on Monetary Policy (SOMP) so the impact of the minues are a bit muted

Quick headlines via Reuters:

  • At August meeting judged prospects for growth, inflation would be improved by easing
  • Room for stronger economic growth given inflation to remain low for some time
  • Board saw diminished risks from housing debt, rising home prices
  • House prices, auction rates, mortgage lending pointed to cooling market
  • Rising A$ could complicate transition from mining boom
  • GDP growth likely to be more modest in Q2, after strong Q1
  • Considerable uncertainty about momentum in labour market, inflation outlook
  • Forward indicators of jobs growth pointed to steady unemployment in coming months
  • Unemployment expected to dip only slowly to 5.5 pct by 2018, leave slack in market
  • Pipeline of home building at very high levels, risk of oversupply in some markets
  • Supply of new homes to keep rent inflation at low levels
  • China stimulus supporting growth there, but uncertainty over longer-term outlook
  • Reasonable chance of further stimulus globally impacting on currencies

AUD/USD is bouncing after the minutes (though you'' notive it started to move a little higher in the quarter hour ahead of the release:

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There does not appear to be anything new or surprising in the minutes. the developments the RBA is noting have been well flagged.

What about this one: "Rising A$ could complicate transition from mining boom". The RBA has been saying that for years now.