The Reserve Bank of Australia (RBA) minutes from Sept 5th monetary policy meeting is out, highlighting that a further rise in AUD could lead to slower pickup in growth and inflation.
Main Headlines via Reuters:
Need to balance risks of high household debt against low inflation
Rise in A$ driven by fall in US$, weighing on domestic growth and inflation
Further rise in a$ would result in slower pick-up in growth, inflation
Economy had grown below trend in 2016/17, recent data mostly positive
RBA meeting started with discussion on labour market, which had continued to improve
Leading indicators suggested jobs pick up was likely to continue
Jobs growth to support household incomes and spending, but high debt a risk
Labour market still has spare capacity, wage growth to remain low for some time
Clear signs housing market in Sydney had eased, less so in Melbourne
Outlook for non-mining investment had improved, public infrastructure spending strong
RBA discussed china impact on iron ore, expected prices to fall as new supply came on stream
Growth in China had been stronger than expected, high debt still a threat
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