Inflation-related comments were subdued, with the RBA contemplating an unchanged inflation forecast from three months ago. On the hefty levels the Australian Dollar continues to trade at, the RBA said the currency still remains high. A moderate stabilization on US and China growth was noted.
The market had been pricing about a 60% risk of a December rate cut, a probability regarded as too high for strategists at NAB. The initial remarks that "further easing may be appropriate in the period ahead" keeps the chances of further cuts on the table.
According to Warren Hogan, ANZ's Chief Economist: "RBA considered easing on Melbourne Cup day and today's RBA minutes suggests case for rate cut in December is strong after good wages data and still uncertain world."
Meanwhile, IFR Market's Asian Chief John Noonan, notes "RBA cut in December looks more likely after RBA Minutes", adding that "they don't meet in January so Feb meeting may be too long to wait..."