From the Reserve Bank of Australia march monetary policy board meeting Minutes:
- Considered rate cut at meeting, decided to pause for more data
- Board members "Were of the view that a case to ease policy further might emerge"
- Saw benefit in "allowing some time" for economy to adjust to February rate cut
- Uncertain how borrowers, savers would behave in a world of very low rates
- Lower Australian dollar to help economy, but still above most estimates of fundamental value
- Board discussed risks in housing and commercial property markets
- House price growth strong in Sydney, solid in Melbourne, muted elsewhere
- Board noted recent cut in rates could, at the margin, boost the housing market
- Board also noted household leverage had not increased significantly
- Measures of household stress low, banks profitable and well capitalised
- RBA working with other regulators to contain risks that might come from housing
- Labour market likely to remain sluggish, spare capacity to last for some time
- Australian Bureau of Statistics survey implied non-mining investment to be subdued longer than previously thought
- Board discussed reliability of early estimates of business investment
Headlines via Reuters
Full text of Minutes:
