The Reserve Bank of Australia Statement on Monetary Policy for November 2015 was out earlier:
- RBA statement: Australian dollar is adjusting to lower commodity prices
- RBA's Statement on Monetary Policy - analyst response
More now from the Commonwealth Bank of Australia's CommSec ... they ask ... What does it all mean?
- The Reserve Bank intimated on Tuesday that the economic outlook was improving while at the same time noting inflation was lower than expected. Clearly that gives the Reserve Bank scope to cut rates, if it was needed.
- But the Reserve Bank is not giving any indication that it intends to act on that 'easing bias' any time soon.
- The Statement on Monetary largely fleshes out points noted in the monetary policy decision on Tuesday and Reserve Bank Governor's speech on Thursday. No doubt the Reserve Bank would like growth a little stronger than current levels, that way the jobless rate could come down. Still, moderate growth with low inflation and stable unemployment isn't a bad combination either.
- CommSec expects rates to stay low for the foreseeable future