Minutes of the Reserve Bank of Australia octo October 2019 policy meeting.
- board judged case for easing at October meeting outweighed arguments against a move
- board prepared to ease policy further if needed to support growth, jobs
- reasonable to expect extended period of low rates would be required
- board members noted trend to lower rates globally
- discussed possibility rate cuts might have less impact than in past
- judged lower rates would still have an impact through the AUD
- members noted export demand had been supported by lower level of the AUD
- discussed risk that low rates would over-inflate home, asset prices
- saw limited risks of excessive borrowing for now, but warranted monitoring
- board discussed case for keeping rate cuts in reserve for emergencies
- decided lower level of rates best way to lessen impact of any negative shocks
- mining, housing sectors seemed to have reached "turning points"
- no sign as yet that household consumption responding to rate cuts, tax rebates
- strong jobs growth being met by equally strong increase in labour supply
- leading indicators point to slowdown in jobs growth in quarters ahead
- China-US trade, tech disputes a significant downside risk to global outlook
The dovish tone evident in the statement on the day of the meeting his not contradicted by the minutes. Its no secret the RBA is well and truly in easing mode. I bolded a couple of pints above. Pluses and minuses noted, but the Bank erring on the sside of accommodating ( … cough) the minuses for now.
Note the comments on the AUD above also. RBA encouraging it lower.
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