RBA minutes: Rate cut would be appropriate if no further improvement in labor market, Aussie turns lower

The Reserve Bank of Australia (RBA) published the minutes of its May 7, 2019 monetary policy meeting on Tuesday, with the key headlines found below.  

“Rate cut would be appropriate if no further improvement in labor market.”

“Australia central bank board agreed further drop in jobless rate would be consistent with inflation target.”           

“Important to pay close attention to labour market over the period ahead.”

“Minutes drop line that board saw "no strong case" for a near-term move in policy.”

“Board noted economic forecasts were based on market assumption of lower rates.”

“Outlook would thus be less favourable without an easing in policy over next 6 months.”

“Board recognized lower rates would have less of an impact than in the past.”

“But lower rates would still put downward pressure on a$, reduce mortgage repayments.”

“The AUD at lower end of range of last couple of years, falling yields offset firm" commodity prices.”

“Some leading indicators of labor demand had eased, outlook more mixed.”

“Forecasts saw spare capacity in the labor market for next couple of years.”

“Q1 inflation noticeably lower than expected, housing having a disinflationary effect.”

“Risks to household consumption growth "tilted to the downside".”

“GDP growth to be supported by higher exports, new mining investment projects.”

“Risks to the global economy remained tilted to the downside.”

2Significant global uncertainty over outlook for china, trade tensions.”