An as expected decision from the Reserve Bank of Australia from their April monetary policy meeting
RBA Governor Lowe's accompanying statement, full text:
Statement by Philip Lowe, Governor: Monetary Policy Decision
Quick summary Headlines via Reuters:
- Says global economic conditions continue to improve
- RBA says unchanged policy consistent with growth, inflation targets
- China faces medium-term economic risks
- High commodity prices providing significant boost to Australian national income
- Says reduced reliance on interest only housing loans would be a positive development
- Australian economy continuing transition from mining investment boom
- Recent data consistent with moderate growth
- Says some employment data have softened
- Says recent supervisory measures should help address risks associated with rising indebtedness
- Unemployment rate has moved a little higher
- Says house prices rising briskly in some markets
- AUD appreciation would complicate the economy's transition away from mining
- Pick up in underlying inflation expected to be gradual
The Bank noting some concerns there on the labour market, also flagging continued concerns with high house prices and on debt levels (Lowe has spoken of RBA worries on debt and I've refereed to it a couple of times already today in my previews) ... the bank is going to want to see those new prudential measures (introduced by APRA last Friday) take effect to put a lid on debt growth and house price growth ... and as I said at the time of the new APRA measures .... this'll let the bank cut if they deem it necessary (I reckon they might very well deem it so .... but we need to see house prices come off the boil). the next few months for the RBA are going to get much more interesting!
Lowe speaks at 0915GMT ... stay tuned for more clues!
