RBA minutes: Talks up the economy, but maintains scope for further easing

FXStreet (Mumbai) - The minutes from the Reserve Bank of Australia’s (RBA) Dec 1 meeting released last minutes, reiterates that ‘the AUD is adjusting to decline in commodity prices” while leaving further scope for easing in wake of softer price pressures.

Key points from the RBA minutes:

Judged recent economic data had generally been positive when holding rates at 2 pct

Reiterate inflation may afford some scope for further easing if needed

A$ adjusting to significant declines in commodity prices

RBA expected economy to strength gradually as drag from mining investment diminished

Drag from mining to peak in 2015/16 financial year

Low rates supporting household demand, home building

Liaison pointed to improving retail sales, faster pace of household consumption

Overall conditions still quite accommodative despite rise in bank mortgage rates

Stronger employment growth, leading indicators pointed to more gains ahead

China outlook clouded by industrial overcapacity, stock of unsold homes

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