Westpac is out with a quick take on the Reserve Bank of Australia December meeting minutes
Jumping to their conclusion, bolding mine:
The concluding paragraph in the minutes clearly lays out the compass for policy.
- Strength in the labour market and expected associated spill-over effects is expected to continue, although policy will only be adjusted when it is clear that wage and price pressures return.
- Westpac has a more cautious view on the sustainability of the current jobs and business environment while expecting that soft income growth and high debt levels will continue to constrain the consumer.
- We note that even the RBA now describes household consumption as a "significant risk".
Accordingly, we do not expect to see the necessary conditions which are outlined by the RBA to emerge over the course of 2018. We retain our view that the overnight cash rate will remain on hold in 2018 and 2019.
