Minutes of August 2014 Monetary Policy Meeting of the Reserve Bank Board
Headlines:
- Repeats most prudent course is period of rates stability
- Board members noted “significant uncertainties” around growth forecast
- Members felt it important to consider risks to the forecast as well as central case
- AUD remained high by historical standards, offering less support to economy
- GDP growth likely slowed to moderate pace in Q2, seen below trend over 2014/15
- Falling mining investment, fiscal consolidation, high AUD to restrain growth
- Signs of improvement in non-mining investment; resource exports to grow strongly
- Home building likely to stay strong, home price inflation still robust
- Signs of pick in labour demand, but would take some time before unemployment fell
- Notable degree of spare capacity in labour market to keep wages growth subdued
- Inflation pressures expected to ease, keep inflation consistent with target
- Rates on housing, business loans continued to fall; added to noticeable easing in conditions
Full text: Minutes of the August 2014 Monetary Policy Meeting of the Reserve Bank Board
