The Reserve Bank of Australia (RBA) published the minutes of its July 2 2019 monetary policy meeting on Tuesday, with the key headlines found below.
Board to adjust policy "if needed" to support growth.
Board to monitor labour market closely, improvement needed to spur wage growth.
Spare capacity likely to remain in labour market for "some time”.
Lower rates to keep A$ lower than would otherwise be the case
Lower borrowing costs to free up cash for consumer spending.
Board recognised uneven effect of lower rates on different households.
Extent of spare capacity meant rate cut unlikely to lead to risky rise in borrowing.
Labour demand being met by rise in participation, rather than fall in unemployment rate.
Board saw prospects of lift in household income, support from tax rebates.
Signs of stabilisation in Sydney, Melbourne housing markets.
Funding costs for major Australian banks had reached historic low.
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