Minutes of the April 2015 Monetary Policy Meeting of the Reserve Bank Board:
- Rates right for time being, board accepted easing might be needed
- In considering rate cut, discussed asset prices, AUD, uncertain response of savers and borrowers
- Board saw advantage in waiting for more data, including on inflation
- Lower AUD would help economy, further decline likely given weak commodity prices
- Iron ore prices had fallen more than forecast, could further curb mining investment
- Non-mining business investment softer than expected, might even decline over year
- Board alert to risk low rates could fuel imbalances in housing market
- RBA noted housing credit had stopped accelerating, home price strength mainly in Sydney
- Household consumption, home building had picked up but gdp growth likely below trend
- Board noted government spending made no contribution to growth in past year
- Board discussed unusual trading in AUD just prior to February and March meetings
- Internal inquiry found no evidence of lapses leading to early release of information
Quick headlines via Reuters
More added:
- Non-mining investment could decline over next year or so
- Illiquidity could have exacerbated pre-decision AUD moves
- Lower AUD would help achieve more balanced growth
- Recent indicators suggested below-trend GDP growth in Q1
- Low rates could possibly foster housing market imbalance
- Further policy easing may be appropriate
- In period ahead response of borrowers and savers to rate moves uncertain
- Advantages in receiving more data to assess economic path
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Note in those headlines above ... "Board saw advantage in waiting for more data, including on inflation"
That's tomorrow! Q1 CPI data
