Minutes of the Reserve Bank of Australia May policy meeting are here:

The response from Westpac is very interesting indeed - check out the full piece here:

If you are following along on RBA developments the piece is well worth a read in full. Some of the points I found most interesting:

  • In a new turn of phrase, the minutes note that while this expected development was unfolding, "it would be appropriate to hold the cash rate steady and for the Reserve Bank to be a source of stability and confidence".
  • That implies a badge of honour" to have steady rates rather than a stance that needs to be justified in a world where other central banks are tightening policy.

"a source of stability and confidence". Oh dear. Westpac ... well, you can almost see an arched eyebrow as Evans types "a badge of honour". probably much better if the Bank just focuses on responding to development, not holding rates steady as some sort of confidence inspiring role.

but, maybe I just need a cup opf tea.

Anyway, Westpac's conclusion:

If anything, these minutes seem to imply even greater patience with the current policy of steady rates. In describing the current policy as "a source of stability and confidence", the Bank is clearly contrasting its policy with the Federal Reserve's ongoing tightening cycle, but feels no embarrassment with its stance. The issues remain the same, associated with developments in the labour market, inflation and wages. In that regard however, the evolution of consumption in the context of a very low savings rate and the impact of tightening financial conditions on the housing market and house prices will be critical.

Westpac continues to expect that the Bank's policy of "stability and confidence" (rates on hold) will be maintained throughout 2018 and 2019.

Still come this week in Australia: