RBA minutes: rate change timing here dependent on local economic conditions
|The RBA minutes were released and the Aussie dropped a handful of pips with the minute not showing any surprises:
- RBA removes high household debt mention in pol stance judgment
- Move to higher rate abroad has no direct implication here
- Economic conditions globally, locally more positive since 2016
- Asset valuations generally quite high
- Rate change timing here dependent on local economic conditions
- Further "Material" AUD rise wouldn't hurt economic activity, inflation
- Slow wage growth, high household debt could constrain spending
- Members noted policy had been eased significantly more in other advanced economies
- Judged steady policy consistent with growth and inflation targets
- Members discussed importance of risks in household balance sheets
- Rise in a$ driven by fall in us$, weighing on domestic inflation
- A "Material" further rise in a$ would result in slower pick-up in growth, inflation
- Increase in q2 gdp consistent with forecasts for gradual acceleration in growth
- Public infrastructure spending rising very strongly, last for a couple of years more
- Data pointed to subdued price pressures across economy in q2
- Liaison suggested firms absorbing higher energy prices into margins
- Recent strong jobs growth across states to support household incomes, spending
- Jobs gains had been well above level needed to absorb population growth
- Leading indicators pointed to slightly above-average job growth for rest of 2017
- Labour market still has spare capacity, wage growth to remain low for some time
- Housing markets had continued to ease in sydney and melbourne
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