I posted earlier on the RBA May meeting minutes...


  • The meeting itself was a 'no change' affair (link is here for more)
  • And it was followed a few days later by the quarterly Statement on Monetary Policy

On the Statement, my comments from the time (but check out the link for more detail):There is nothing to surprise in the Statement (if you've been paying attention). The main points are familiar .... the bank is concerned specifically about:

  • Slow jobs growth
  • Slow wages growth
  • High household debt
  • The impact of these on spending (i.e. not in a good way :-D )
  • Slow recovery in non-mining sectors of the economy


Preview now, this via CBA:

  • Issues around high household debt and soft income growth are likely to be noted in Tuesday's RBA meeting minutes
  • However we don't think the minutes will offer any new insights given the heavy flow of information from the RBA in recent weeks
  • AUD reaction will be muted in our view. The Minutes are unlikely to provide new material information than was already outlined in the May quarterly Statement on Monetary Policy (released earlier this month).
  • The Minutes will reaffirm the neutral bias for monetary policy. Australian wages growth and inflation remain low but household debt is high and has been rising. And the RBA have concerns that high household debt levels means that any negative economic outcomes may be more likely to affect spending decisions.