Reserve Bank of Australia June 2019 monetary policy board meeting minutes.
- Mon Pol Board agreed "more likely than not" further policy easing would be appropriate
- labour market would be "particularly important" on deciding further easing
- board noted lower interest rates not only policy option available on unemployment
- judged June rate cut would help reduce spare capacity in the labour market
- data suggested spare capacity to remain in labour market for some time
- factors limiting inflation, wage growth also expected to last for some time
- lower rates would push down value of A$, reduce household debt repayments
- board aware that lower rates hurt savers, but would stimulate economy overall
- judged lower rates would not spur risky rise in borrowing, or inflation
- persistence of subdued inflation threatened to un-anchor inflation expectations
- housing market remained weak, though auction clearance rates had pick up
- APRA easing of bank lending rules would lead to modest increase in borrowing capacity
- escalation in Sino-US trade dispute intensified downside risks to global economy
Headlines via Reuters
The full text is here:
- Minutes of the June 2019 Monetary Policy Meeting of the Reserve Bank Board
AUD to a fresh session low under 0.6850.
Once again the RBA point us towards watching labour market developments... "particularly important" on deciding further easing
RBA also mention that other policy options (i.e. other than monetary) be considered - i.e. fiscal policy boost. I wonder if they've even noticed the gigantic $ being poured into infrastructure developments?
