The Reserve Bank of Australia policy decision for November 2018
Lowe's statement headlines via Reuters:
- low rates supporting economy
- progress on unemployment, inflation expected to be gradual
- housing markets have slowed in Sydney, Melbourne
- credit conditions tighter than they have been for some time
- GDP growth revised up a little in 2018, 2019
- AUD remains in range of past couple of years
- GDP to average 3.5 pct in 2018, 2019 before slowing in 2020
- central scenario for inflation 2.25 percent in 2019, bit higher in 2020
- business conditions are positive
- public infrastructure investment supporting economy
- household consumption a source of uncertainty
- outlook for labour market remains positive
- wage growth remains low, expect further lift over time
- further gradual decline in unemployment expected to 4.75 percent in 2020
Link to the full text is here:
As you can all se, AUD response is barely noticeable. I have a follow up post with some comments on the statement but spoiler - there is nothing much in it indicate any change in policy soon.
The bank is comfortable with where it is on rates. Whether that is a reasonable position depends on how you view them missing their inflation target for years now.
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For background to the decision:
