Reserve Bank of Australia minutes of the policy board meeting in February

  • Judged steady rates consistent with economic growth, inflation targets
  • Repeats an appreciating AUD would complicate economic transition
  • AUD had risen a little, supported by higher commodity prices
  • Uncertain on momentum in labour market, spare capacity to last for some time
  • Expected labour costs to build gradually, impact of competition on retail inflation to ease
  • Medium-term inflation expectations well anchored, inflation to rise gradually
  • Members noted downward pressure on inflation could be more persistent than assumed
  • Some indications wage growth had reached a trough
  • Resource exports to boost GDP growth, while drag from mining investment faded
  • Higher terms of trade provide upside risks to domestic economic forecasts
  • Board members more positive on near-term prospects for global economy
  • More confident that Chinese growth to stay resilient in 2017, still risks for medium term
  • Saw significant downside risks to global growth if Trump pursued restrictive USpolicies on trade, immigration

The minutes here reflecting the slightly more sanguine tone in the Statement after the meeting ... upside risk to domestic eco forecasts ... more positive on global economy ... confident on China growth ...

Sounds like the central bank equivalent of a raucous, drunken party.

Then a note on the risks posed by the new US admin. That's like the grumpy old guy next door telling you to turn that music down!

Here is the full text: Minutes of the Monetary Policy Meeting of the Reserve Bank Board

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