Minutes from the Reserve Bank of Australia (RBA) monetary policy board September 2nd meeting. Headlines:
- Reaffirms the most prudent course is a period of rates stability
- Exchange rate above most estimates of fundamental value
- Is monitoring housing price risks
- Risks from house price rises warranted close observation
- Policy must be cognizant to risk from asset price buildup
- Non-mining investment to pick up modestly in coming quarters
- Mining investment set to drop noticeably in next year or so
- Australian dollar offered less assistance to achieving balanced growth
- Says credit growth had picked up, including to businesses
- Labor market conditions subdued, wage growth low
Full text is here:
Minutes of September 2014 Monetary Policy Meeting of the Reserve Bank Board
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Nothing surprising from the these minutes today.
Interesting comments on house prices … Policy must be cognizant to risk from asset price buildup, which perhaps argues for a rate hike … then this …Labor market conditions subdued, wage growth low is an argument against any near-term rate hike.
I think this Reaffirms the most prudent course is a period of rates stability about sums it up, though.
