Reserve Bank of Australia June meeting minutes out now
Reuters with the quick headlines:
- Low rates supporting economy, steady policy consistent with goals
- Progress on unemployment and inflation expected to be only gradual
- Recent data consistent with forecast acceleration in GDP growth to above 3 pct
- Inflation to remain low for some time, pick up gradually to above 2 pct
- A rise in the A$ would lead to slower pick up in inflation, economic growth
- Labour market had eased in recent months, but leading indicators pointed to pick up
- Wage growth low and stable, liaison showed more firms expecting faster growth
- Fair Work Commission 3.5 pct pay award likely to boost overall wage growth in q3
- Data suggested household consumption was less buoyant in q2, partly due to warm weather
- Public infrastructure investment expected to support economy for some time yet
- Board noted house prices had eased further in Sydney and Melbourne, still up 40 pct since early 2014
- Board discussed demographic trends, strong population growth and need for infrastructure spending
- Prospect of further tariff measures on trade a downside risk to global outlook
- Board discussed political risks in Italy and EU, instability in emerging markets
Full text is here: Minutes of the June 2018 Monetary Policy Meeting of the Reserve Bank Board
Familiar themes again from the RBA. Special notes on the rise in the minimum wage (that's the reference to the Fair Work Commission). No mention of which direction the next cash rate move is likely to be. We often hear 'more likely up than down'. but not in these minutes?
