RBA June meeting minutes released:

  • AUD remains high given decline in commodity prices
  • Policy likely to stay accommodative for some time yet
  • Difficult to judge if low rates enough to offset mining investment, fiscal tightening
  • These “uncertainties” would likely take some time to resolve
  • Lower iron ore price still profitable for Australian miners, not so for some others
  • Economic growth to be below trend for next year or so, inflation within target band
  • Demand for labour had improved, but employment growth likely to be only moderate
  • Spare labour capacity to keep wage growth restrained over the year ahead
  • Budget tightening as expected over next two years, more substantial afterward
  • Noted sharp fall in surveys of consumer confidence, doubted their predictive power
  • Liaison with retailers suggested sales growth slowed further in May
  • Significant recovery underway in home building, non-mining investment still subdued

Quick headlines via Reuters

Full text: Minutes of the June 2014 Monetary Policy Meeting of the Reserve Bank Board

Neutral policy bias appears to be still intact.

AUD a little lower (10 points or so) following the headlines.