RBA Minutes: Case to hold was stronger, recent data did not materially alter economic outlook
The Minutes of the Reserve Bank of Australia’s (RBA) September monetary policy meeting, published on Tuesday, highlighted that the board agreed that the “case to hold was stronger, as recent data did not materially alter the economic outlook.”
Additional takeaways
Considered raising rates by 25 bps or holding steady at September meeting.
Some further tightening may be required should inflation prove more persistent than expected.
Case to hold was stronger, recent data did not materially alter economic outlook.
Economy still appears to be on narrow path by which inflation returns to target, employment grows.
Members recognize value of allowing more time to see full effects from past tightening on economy.
Policy move will be guided by incoming data and assessment of risks.
Concerned about productivity growth not picking up as anticipated, services inflation remaining sticky.
Fuel prices rose sharply in august, could boost headline inflation in Q3.
Members noted labor market remains tight, but could be at turning point.
Scheduled mortgage payment rose to a historical high of 9.7% of household income in July, set to increase further.
Market reaction
AUD/USD remains on the back foot near intraday low, trading 0.05% lower on the day at 0.6432, as of writing.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
