The Reserve Bank of Australia (RBA) announcement (no change to cash rate target) and accompanying statement
- AUD remains above most estimates of its fundamental value
- Says most prudent course is likely to be period of stability for rates
- Weakening China property markets a challenge in near term
- Says AUD is offering less assistance to economy than it otherwise might
- Recent data suggest moderate growth occuring
- Says inflation expected to be consistent with target over next two years
- Sees mining investment spending starting to fall significantly
- Sees investment plans outside mining improving
- Says overall still expects below trend growth over the year ahead
- Says labour market has degree of spare capacity, will be some time before jobless rate declines
Full text here: Statement by Glenn Stevens, Governor: Monetary Policy Decision
Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time. Inflation is expected to be consistent with the 2–3 per cent target over the next two years.
In the Board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.
