The minutes from the June 6 Reserve Bank of Australia monetary olicy board meeting

  • Appropriate to keep accommodative stance of policy unchanged
  • Watching labour and housing markets carefully
  • RBA Board discussed how financial stability affected monetary policy, reviewed experience in US and Sweden
  • Important to maintain close cooperation with other regulators, especially APRA
  • House prices rising briskly in some markets, tentative signs pressure starting to ease
  • RBA Board members noted would take time for tighter bank lending standards to impact housing market
  • Low household income growth, high debt posed risks to outlook for consumption
  • Wage growth to remain low for some time, noted isolated reports of higher pay deals
  • Recent faster pace of jobs growth to continue, but underemployment still high
  • Board still expected GDP growth to accelerate to 3 pct over time, despite soft Q1
  • Liaison suggested retail conditions remained challenging
  • Repeats a rising A$ would complicate economic adjustment
  • Magnitude of bank levy not particularly large compared with typical movements in funding costs

Quick headlines via Reuters

Full text is here: Minutes of the June 2017 Monetary Policy Meeting of the Reserve Bank Board


At the same time we got data from the Australian Bureau of Statistics for the Australian house price Index, Q2 of 2017:

  • +10.2% y/y
  • +2.2% q/q