Following are the key headlines from the October RBA monetary policy statement (via Reuters):
Reasonable to expect extended period of low rates.
RBA will ease further if needed.
Gentle turning point appears to have been reached.
Economy still has spare capacity.
Australian dollar at lower levels of recent times.
Inflation pressures subdued and likely to be for some time.
Signs of turnaround in established housing markets, but new dwelling activity has weakened.
Took the decision to lower interest rates further today to support employment and income growth.
Forward-looking indicators of labor demand indicate that employment growth is likely to slow from its recent fast rate.
Economy still has spare capacity and lower interest rates will help make inroads into that
Recent outcomes suggest Australian economy can sustain lower rates of unemployment and underemployment.
Board also took account of the forces leading to the trend to lower interest rates globally.
In both headline and underlying terms, inflation is expected to be a little under 2 percent over 2020 and a little above 2 percent over 2021.
Credit conditions, especially for small and medium-sized businesses, remain tight.
The Aussie is seen fading the knee-jerk spike to 0.6765, now trading near 0.6735 region, as the RBA leaves doors open for further easing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.