Some of the comments on the Reserve Bank of Australia Minutes from around the place:
- Minutes contained some significant changes from the previous minutes
- RBA highlighting jobs and housing markets is significant
Most importantly - on Considerations for Monetary Policy:
- the Board judged that developments in the labour and housing markets warranted careful monitoring over coming months
Discussion on the labour market more down beat
- Soft conditions in the labour market
- Indications from forward looking indicators of labour demand, which were quite positive, have not led to an improvement in current labour market conditions
- Latest jobs report was better, but ... the RBA will remain cautious given volatility in the series
- Weak employment growth --> feedback to household consumption ... has been "a little weaker than expected"
- Policy response could involve a rate cut
Housing market commentary emphasising "risks associated with high and rising levels of indebtedness"
- Policy response to housing markets more likely to be further direct controls ... " the Council of Financial Regulators would consider further measures if needed"
- slow income growth has led to an increase in household debt ratios, "risks associated with the housing market and household balance sheets had been rising".
Economy:
- RBA dropped "Looking forward, year-ended growth was expected to pick up gradually to be above its potential rate over the forecast period" from the March Minutes, April minutes only refer to the economy continuing to grow moderately
