July Monetary Policy Meeting Minutes of the Reserve Bank Board:
- On present indications, prudent to have period of steady rates
- Repeats AUD is high by historical standards, particularly given drop in commodity prices
- AUD offering less assistance to the economy than it might otherwise
- Board noted NZD and CAD also high, were most surprised by low level of US dollar
- Members agreed was difficult to judge if low rates would offset mining, fiscal drag
- Further substantial falls in mining investment expected, public demand to be weak
- Economic growth seen a little below trend over coming year, inflation in target band
- Significant amount of monetary stimulus already in place to support economy
- Saw some improvement in labour market, only moderate jobs growth expected
- Household consumption had eased, liaison suggested retail sales little changed from May to June
- Strong growth in home building expected, non-mining investment rising gradually
- Labour costs subdued, members noted productivity had improved across economy
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Headlines via Reuters
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Full text is here: Minutes of the July 2014 Monetary Policy Meeting of the Reserve Bank Board
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No surprises here …
