Reserve Bank of Australia August monetary policy board meeting minutes
- Board saw no strong case for a near-term move in interest rates
- Next rate move likely to be up if progress made on unemployment, inflation
- Bank to be source of stability and confidence by holding policy steady
- AUD had fallen a little on US$, but TWI still within trading band of last two years
- Household consumption supported by income growth in q2
- Saw less uncertainty about the outlook for household consumption
- Underlying inflation seen at 1.75 pct over 2018, rising to 2.25 pct in 2020
- Govt spending expected to make significant contribution to economic growth out to 2020
- Board members recognised effects of drought conditions on rural sector
- Initial impact of drought likely boosted farm exports in q2, downside risk longer term
- Bank funding conditions "generally accommodative" despite rise in money market rates
- Risks to global outlook had shifted due to trade protectionism, US fiscal stimulus
- Risk of faster fed hikes could lower AUD, support Australian economy
I said earlier the minutes were a little dated, given the communications we have had from the Bank since (SoMP, two appearances (now 3) from Governor Lowe, ellis speech.
So, yeah, nothing much in these.
Previews if you'd like more background:
