- Saw more domestic growth momentum in holding rate at 3.5%.
- Saw interest rates ‘a little below average’ as appropriate.
- Prior easing left mortgage rates below post-1996 average.
- Saw favorable labor market supporing domestic consumption.
- Saw Australian housing market ‘relatively weak’ near term.
- Saw slower global growth, ‘low Australian inflation rate’.
- Members saw ‘a little more momentum’ in the domestic economy.
- Saw Europe crisis , contagion remaining ‘substantial risk’.
- Says inflationary pressures overall remain contained.
- EU pact in late June boosted sentiment substantially.
- Saw ‘no sign of dislocation’ in Australian financial markets.
- Saw China’s growth slowing less than earlier expected .
- Cites growth momentum in July 3 rate pause.
Aussie $ now near sessions high trading at 1.0292. This is one of the reasons why I hate to short this ccy.
