Reserve Bank of Australia July 4 2017 monetary policy Board meeting
No surprise at all that it the cash rate target is left unchanged, the question is how upbeat the Statement from Governor Lowe is.
Headlines via Reuters:
- House prices rising briskly in some markets
- Indicators of labour demand remain mixed
- Employment growth has been stronger over recent months
- Some signs housing market starting to cool
- Housing debt has outpaced slow growth in incomes
- Supervisory measures should help address debt risks
- Various forward-looking indicators point to employment growth going forward
- Rising A$ would complicate economic adjustment
- Economic outlook supported by low rates
- Wage growth remains low, likely to continue for a while yet
- Inflation expected to increase gradually as the economy strengthens
- Slow growth in real wages is restraining growth in household consumption
- Business conditions, investment have picked up
- Economic growth expected to strengthen gradually
- Broad-based pick-up in global economy continuing
The AUD is lower after the statement - Lowe's statement is not as upbeat as the market was looking for. And no bandwagon jumping follow-the-leader of the ECB, BOC, BOE.
Watch 0.7650/60 for initial resistance on any fill-in rally. And, I have the same comment as I had Friday and Monday - 77 and surrounds is still a big reistiance area, there will be more work to be done around here.
Plenty of concern from the Bank on
- employment growth (indicators remain mixed)
- on slow wage growth (remains low, likely to stay that way for a while)
- the slow wage growth holding back demand (restraining growth in household consumption)
- housing debt 'outpacing' incomes
On the positives:
- business conditions
- growth expected to slowly strengthen
- global economy picking up
Full text of Lowe's statement:
