An as expected decision from the Reserve Bank of Australia at their May policy board meeting
- Cash rate remains at 1.5%
Quick Headlines from the Statement (full text below) via Reuters:
- Unchanged policy consistent with sustainable growth and achieving inflation target over time
- House prices rising briskly in some markets
- Has been a broad based pickup in global economy since last year
- Recent supervisory measures should help address risks associated with rising indebtedness
- High level of debt continues to present medium-term risks in China
- Rise in underlying inflation expected to be bit more gradual
- Higher commodity prices providing significant boost to Australia's national income
- Indicators of labour market remain mixed
- Various forward looking indicators still point to employment growth
- Rising A$ to complicate economy's transition from mining
- Says domestic growth expected to increase gradually over next couple of years to a little above 3 pct
- Australia's terms of trade have increased although some reversal of this is occurring
Full text of Statement by Philip Lowe, Governor: Monetary Policy Decision
Well, there you go. Nothing in there leaps out at me as being too surprising. No sign of a rate cut nor a hike, but leaning more towards a hike than a cut perhaps ... rising inflation (more gradual), labour mkt indicators mixed, domestic growth rising to more than 3%. Pretty neutral but if you want a bias its to a hike ... but its marginal.
AUD liking it.
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ps still to come from the Reserve Bank of Australia this week:
- Governor Lowe speaks on Thursday (to the Economic Society (Queensland) Business Lunch, titled Household Debt, Housing Prices and Resilience)
- The Bank releases its quarterly Statement on Monetary Policy (SOMP) on Friday)
