- Scope for policy to respond to any “significant deterioration” in growth outlook.
- Board members made particular note of sharp fall in some commodity prices, downside risks to global economy.
- Yet domestic economy seemed to be growing around trend, impact of past easing still working through.
- Falls in iron ore and coal prices, if sustained, would imply larger-than-forecast drop in terms of trade.
- Delays to some mining projects to have only small effect on strong investment pipeline in near term.
- Still expect substantial increase in resource investment over next year or so .
- Lower prices, high costs could have implications for mining projects under consideration.
- Models suggested A$ may be somewhat overvalued, but not substantially so .
- Board members discussed whether high A$ was weighing more heavily on economy than expected .
- Liaison pointed to pick up in retail spending for August, housing sector remained subdued.
- After tentative signs of stabilization, most recent Chinese data been ‘a touch weaker’.
- Latest data pointed to slightly softer conditions in many parts of the global economy.
AUD/USD bouncing off the lows of 1.0430/35 after the release of the minutes. Leaves room for rate cut in October still questionable.
