RBA Minutes: No strong case for a near term rate move

The Reserve Bank of Australia (RBA) is out with the minutes of its August monetary policy meeting, with the key headlines found below.

Next rate move likely to be up if progress made on unemployment, inflation.

Bank to be a source of stability and confidence by holding policy steady.

AUD had fallen a little on us$, but TWI still within a trading band of last two years.

Household consumption supported by income growth in Q2.

Saw less uncertainty about the outlook for household consumption.

 Underlying inflation is seen at 1.75 pct over 2018, rising to 2.25 pct in 2020.

Govt spending expected to make significant contribution to economic growth out to 2020.

Board members recognized effects of drought conditions on the rural sector.

 The initial impact of drought likely boosted farm exports in q2, downside risk longer term.

Bank funding conditions "generally accommodative" despite rise in money market rates.

Risks to global outlook had shifted due to trade protectionism, the US fiscal stimulus.

Risk of faster fed hikes could lower AUD, support the Australian economy.