Minutes of the December 1 Reserve Bank of Australia monetary policy board meeting

  • Judged recent economic data had generally been positive when holding rates at 2 pct
  • Reiterate inflation may afford some scope for further easing if needed
  • AUD adjusting to significant declines in commodity prices
  • Expects economy to strength gradually as drag from mining investment diminished
  • Drag from mining to peak in 2015/16 financial year
  • Low rates supporting household demand, home building
  • Liaison pointed to improving retail sales, faster pace of household consumption
  • Noted lending for housing investment had slowed, price gains moderating
  • Overall conditions still quite accommodative despite rise in bank mortgage rates
  • Business surveys pointed to improvement in non-mining sectors
  • Noted stronger employment growth, leading indicators pointed to more gains ahead
  • China outlook clouded by industrial overcapacity, stock of unsold homes

Quick Headlines via Reuters

Full text is here: Minutes of the December 2015 Monetary Policy Meeting of the Reserve Bank Board


  • The meeting was on December 1.
  • Cash rates were left unchanged at 2%
  • The next meeting is on February 1

The 'vibe' of the Minutes is quite positive for the economy ... albeit with risks (as always). If the statement accompanying the December 1 decision was fairly neutral (I assess it was), the Minutes reinforce that.


As the Minutes were being released we got Q3 house prices out also. Just for completeness:

Australia House Price Index Q3: 2.0% q/q

  • expected 2.0% and prior was 4.7%

For the y/y, +10.7%

  • expected 10.2%, prior 9.8%

That's a 12th straight quarter of gains

  • The +10.7% y/y is the fastest pace of gains since the start of 2014


Meanwhile, a dip for the AUD then retraced: