No change in cash rate, left at 1.5%, as unanimously expected
Headlines from the statement from Governor Lowe accompanying the decision :
- Rising Australian dollar could complicate economic transition
- Global economic conditions have improved over recent months
- Unchanged policy consistent with growth, inflation targets
- Says labour indicators have been mixed
- Higher commodity prices have supported a rise in Australia's national income
- Headline inflation expected to pick up over the course of 2017
- House prices rising briskly in some markets
- Says US rates expected to rise further, no longer expectations of further easing in other major economies
- Australian economy continuing to transition after mining boom
- Says medium-term risks to China growth remain
Full text of the Statement is here:
Statement by Philip Lowe, Governor: Monetary Policy Decision
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No surprises in there.
- "House prices rising briskly in some markets" - this reiterating the risks already stated - to financial stability and also to household spending
- "labour indicators have been mixed" - low wage growth and how this is impacting on spending is a key RBA concern
Other points - Aussie economy doing all right, expectations of further global easing has pretty much disappeared, Aussie inflation expected to gradually tick higher, and the usual nod to China risks. Like I said ... nothing to surprise in these comments.
Key take away for today is that rates are on hold for a good while (again, not surprising)
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PS. If you are wondering why the AUD spiked up and then came right back down again (to be net barely changed), think market dynamics (of desks holding a few stop loss orders on top there).
