Reserve Bank of Australia minutes, from the August 11-12 meeting:
The RBA board saw a strong case for a 25bps cut in the cash rate
The board judged some further reduction in the cash rate likely needed over the coming year
The stance of policy was still considered somewhat restrictive
The pace of rate cuts would be determined by incoming data and the balance of global risks
The board saw arguments for both a gradual pace of easing and for a faster pace
The labour market remained a little tight, inflation was still above midpoint, and domestic demand was recovering
Uncertainty about spare capacity and the neutral rate also argued for gradual easing
Faster easing might be needed if the labour market is already in balance, risking inflation undershooting the midpoint
The balance of risks could shift to the downside on adverse developments in the global economy
The board agreed it was not yet possible to judge between scenarios and would be guided by data
Latest staff forecasts were consistent with meeting full employment and inflation targets
The board judged house price increases to be within the bounds of past easing cycles, with home building picking up
Risks from U.S. tariff policy remained significant, though the worst outcomes seemed to have been avoided
The board considered whether to run down government bond holdings at a faster pace but decided it was not needed
Bonds would continue to be run down as they mature, with a faster pace no longer under consideration
These are a little less hawkish (more dovish, if you prefer) than I was expecting. I bolded those that highlight this take for me. Of course, the 'data dependence' was reiterated, CPI and jobs the big two to watch ahead.
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AUD/USD has dipped after its rally earlier on the Trump firing Cook news:
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From the day of the cut:
