Highlights of the RBA Minutes released Oct 20, 2015:
- More evidence of economic rebalancing toward non-mining
- Rebalancing increasingly being supported by depreciation in AUD, services exports
- Members expected economic growth had strengthened in Q3 compared to Q2
- Sydney home price growth appeared to have slowed, uncertain if slowdown will last
- Space capacity in economy, domestic cost pressures low
- Rate cuts earlier in 2015 supporting aggregate demand
- Too soon to be confident of sustained slowing home prices
- Recent data raised concerns about economic growth in China, far East
- In China, indicators of activity for July and August had suggested further moderation in growth
- Full text
AUD/USD traded at 0.7258 ahead of the results, up about 10 pips on the session. After the Minutes, it's up to 0.7268.
The final paragraph of Stevens' statement:
- The Board today judged that leaving the cash rate unchanged was appropriate at this meeting.
- Further information on economic and financial conditions to be received over the period ahead will inform the Board's ongoing assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.