Reserve Bank of Australia minutes from the September monetary policy board meeting
- Economic drag from falling mining investment looked to have peaked in 2015/16
- Judged current stance of policy consistent with growth, inflation targets
- Steady decision took into account rate cuts in May and August, recent data
- Estimated around half of the August rate cut had been passed on to bank customers
- Repeats rising AUD would complicate economic rebalancing
- Decline in AUD since 2013 continued to support traded sector of economy
- Data suggest economy growing in line with potential
- Forward indicators consistent with little change in unemployment rate in coming months
- Cost pressures, wage growth set to remain low for some time
- Conditions in established housing market had generally eased, house price growth moderated
- High home building approvals pointed to significant amount of work in pipeline
Quick headlines via Reuters
Full text: Minutes of the September 2016 Monetary Policy Meeting of the Reserve Bank Board
-
Check out that "Data suggest economy growing in line with potential". That, to me, sounds far too sanguine.
Still, the indications from the RBA here is a neutral stance on policy. The (relatively) more upbeat outlook should ensure they are on hold for some time to come barring surprise developments. Dare I say it ... data dependent ...
