RBA minutes: Further monetary policy easing likely ahead, Aussie refreshes 5-month lows

The Reserve Bank of Australia (RBA) published the minutes of its June 4 2019 monetary policy meeting on Tuesday, with the key headlines found below.  

Board agreed "more likely than not" further policy easing would be appropriate.

Labor market would be "particularly important" on deciding further easing.

Board noted lower interest rates not only policy option available on unemployment.

Judged June rate cut would help reduce spare capacity in the labor market.

Data suggested spare capacity to remain in labor market for some time.

Factors limiting inflation, wage growth also expected to last for some time.

Lower rates would push down value of A$, reduce household debt repayments.

Board aware that lower rates hurt savers, but would stimulate economy overall.

Judged lower rates would not spur risky rise in borrowing, or inflation.

Persistence of subdued inflation threatened to un-anchor inflation expectations.

Housing market remained weak, though auction clearance rates had pick up.

Apra easing of bank lending rules would lead to modest increase in borrowing capacity.

Escalation in Sino-US trade dispute intensified downside risks to global economy.