Reserve Bank of Australia April meeting minutes;
Headlines via Reuters:
- Low inflation would provide scope to ease policy if necessary
- Saw reasonable prospects for continued moderate economic growth
- Appropriate for policy to be "very accommodative" given low inflation, higher AUD
- A rising AUD could complicate economic rebalancing, keep inflation low
- Board noted service sector exports sensitive to AUD, discussed impact of AUD more broadly
- AUD rise due in part to higher commodity prices, expectations of slower Fed hikes
- Low interest rates had played important role in boosting consumption, housing market
- Awaiting new information on inflation, whether jobs strength would be maintained
- Members noted labour market noticeably stronger than year earlier
- Slowdown in employment growth in early 2016 was to be expected
- Recent data consistent with further moderate growth in economy in Q1
- Liaison reported retail trading conditions were generally favourable
- Rise in China social financing a sign of Beijing's willingness to support growth there
- Growth in Australia's major trading partners seen a little below average
There is nothing here surprising. RBA is on hold for a good while yet.
Full text here: Minutes of the April 2016 Monetary Policy Meeting of the Reserve Bank Board
I'll post more as reactions come in
-
Governor Stevens speaks tonight in NY. He may try to jawbone the AUD, but given the consistent messages from the RBA indicating they are on hold any success he has in driving the AUD down will be met by buyers happy to get it cheaper.
