Minutes of the Reserve Bank of Australia's March monetary policy board meeting

  • Low inflation would provide scope for further easing if necessary
  • Board members saw reasonable prospects for continued economic growth
  • Appropriate to leave cash rate at an accommodative setting
  • To watch labour market trends, impact of turbulence in financial markets
  • Recent data suggested economy growing at moderate pace in Q1
  • Low rates, past fall in Australian dollar helping rebalance economy to non-mining activity
  • Conditions in housing market had eased, lending for investment had slowed
  • Labour market had clearly improved, leading indicators consistent with jobs growth
  • On the long-term outlook for China, noted urbanisation to aid growth in working-age population
  • Low level of foreign currency debt differentiated China from past EM crises
  • China's rising household incomes positive for Australian exports over long run

Full text is here: Minutes of the March 2016 Monetary Policy Meeting of the Reserve Bank Board

There isn't much too surprising from the minutes. One thing to keep in mind when reading them is they from a meeting held on March 1. Since then we've had some hefty moves in markets, AUD from 71, iron ore price up 10+% (iron ore is an important Australian export), oil has rebounded.

Often the Minutes are quite dated by the time we get them. I'd argue these ones are even more dated than usual given the market moves since the meeting.

Having said all that, the Australian dollar is barely moved since. it had a pop above 0.7520 and is around 0.7515 now.

ADDED - Here we go now, AUD dipping under 0.7510. That's more like it.


At the same time Motor Vehicle Sales for February was out.

  • -0.1% m/m (prior +0.5%) and +2.3% y/y (prior +5.1%)