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.