RBA October monetary policy meeting minutes published now:
- Says rate cut not imminent but doesn’t close off chance
- Noted recent appreciation of AUD, uncertain if it would be sustained
- Saw sings of increased demand for borrowing
- Judged there is a substantial degree of policy stimulus, to continue to gauge effects
- Effect of low rates most clear in housing, further pick up in dwelling investment seen
- Noted the uncertainty oin the US fiscal environment, saw US debt-ceiling being reached mid-October
- Forward-looking indicators of labour demand remained soft
- inflation expected to remain within target over the next one to two years
- noted pickup in business and consumer confidence, hard to know if this trend can continue
Link to full text of the minutes
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There isn’t much new in this release, but the easing bias seems certainly to have moved to much more neutral. They still have kept the option of further rate cuts open, though – it being data-dependent.
