RBA February meeting minutes - extended period of low rates required

Author: Eamonn Sheridan | Category: Central Banks

AUD/JPY has dribbled lower since this reality announced by Apple earlier:

aud yen aapl

Anyway, back to the minutes … Headlines via Reuters: 

  • board discussed case for easing, chose to hold given rates already very low
  • board remained prepared to ease policy further if needed
  • reasonable to expect extended period of low rates will be required
  • further rate cut could speed progress toward jobs and inflation target
  • but needed to be balanced with risks from yet lower rates, including impact on savers
  • risk easing could encourage more borrowing when home prices already rising strongly
  • board to monitor developments carefully, including in labour market
  • noted A$ was near its lowest level since 2009
  • coronavirus new source of uncertainty for global economy, too early to judge impact
  • coronavirus a "material" risk to outlook for china economy, and thus Australia
  • economic drag from bushfires to be felt in Q4 and Q1, full recovery expected by year end
  • outlook remained for Australian economy to improve due in part to housing pick up
  • consumption a key uncertainty, rising housing prices and turnover should support
  • acceleration in wage growth would be welcome, though no pick up seen over next two years

Full text here: 

Background on this release is here:
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