RBA minutes: Recent modest fall in AUD helpful for domestic economy

Dhwani Mehta FXStreet

The Reserve Bank of Australia (RBA) published the minutes of its September 4 monetary policy meeting on Tuesday, with the key headlines found below.

Recent modest fall in AUD helpful for the domestic economy

Recent modest fall in AUD helpful for the domestic economy.

Board agreed no strong case for near-term move in interest rates.

Next move in rates likely to be upward if economy develops as expected.

RBA to be source of stability and confidence amid gradual progress to targets.

Significant global trade tensions a "material risk" to the outlook.

Board saw Australian GDP growth above potential over next couple of years.

Labour market positive, board noted marked decline in youth unemployment.

Foresaw above-average growth in jobs, jobless rate to fall gradually toward 5 pct.

Liaison pointed to modest increase in wages growth in coming quarters.

Drought expected to lower farm production, exports in 2h of year.

Mortgage hikes by banks implied "small rise" in average outstanding home loan rate.

Home price falls in Sydney, Melbourne more widespread across suburbs, price sectors.

Liaison with housing developers showed off-plan apartment sales had fallen.

Board discussed strains in emerging markets including turkey and Argentina.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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