Reserve Bank of Australia November monetary policy decision

Leaves the cash rate target on hold at 1.5%

  • Where its been ever since the August 2016 meeting
  • 14th consecutive on hold decision (do the maths, its 15 months but no meeting in January)
  • And will be for many, many months to come.

Quick Headlines via Reuters:

  • Reserve Bank of Australia says forecast for Australian economy largely unchanged
  • Says judged steady policy consistent with growth, inflation targets
  • Expects economy to grow at an annual 3 pct rate over the next few years
  • Says higher AUD is restraining price pressures
  • Says increased infrastructure investment supporting the economy
  • Says rising AUD would slow economy
  • Slow growth in wages, high household debt likely to constrain spending
  • Signs conditions are easing in Sydney house prices
  • Unemployment expected to decline gradually
  • Global economy continuing to improve
  • Inflation remains low, likely to stay so for some time
  • Labour market has continued to strengthen
  • Australia's terms of trade expected to decline over the period ahead
  • Forecast remains for inflation to pick up gradually

If you read those headlines that's probably a reasonable summation of where we are at in the Australian economy. Yes to all of these from me:

  • increased infrastructure investment supporting the economy
  • Slow growth in wages likely to constrain spending
  • High household debt likely to constrain spending
  • Signs conditions are easing in Sydney house prices
  • Global economy continuing to improve
  • Inflation remains low, likely to stay so for some time
  • Labour market has continued to strengthen

On this ...

  • Expects economy to grow at an annual 3 pct rate over the next few years

Nope, dreaming. Slower.

And, on the bit of AUD jawboning. That is a weak effort. Could do better.

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Here is Governor Lowe:

Statement by Philip Lowe, Governor: Monetary Policy Decision

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Next up from the RBA is the Statement on Monetary Policy

  • Due at 11.30am Friday 10 November (0030 GMT)

I posted previews of this decision most of which have previews of Friday's Statement included .... bonus!