More responses to the RBA Nov minutes earlier - the "killer line"
Reserve Bank of Australia November monetary policy board meeting minutes here:
Snippet from the NAB response:
- minutes have a clear dovish tone
- the killer line highlighting the Board agreed a 'case could be made' for a rate cut at the November meeting
This via Westpac:
- The case for a December rate cut is heavily downplayed in these minutes
- although …. the meeting occurred before the disappointing wages and employment prints from last week.
- We certainly do not believe that those prints will be sufficient to move the RBA away from its current "monitoring" approach and so confirm our forecast that the next cut will occur in February 2020.
- The discussion around the impact of low rates on confidence is clearly very significant and gives some support to our view that 0.5% will be the effective lower bound of the cash rate in this cycle.