RBA minutes: Board agreed there was not a strong case for near-term move in policy
|The minutes of the Reserve Bank of Australia (RBA) April monetary policy meeting released today showed the policymakers see little reason for a near-term move in policy.
Key points
- Board agreed there was not a strong case for near-term move in policy
- Given current circumstances, the board agreed with next move in rates likely to be up
- Progress on unemployment and inflation likely to be only gradual
- Inflation to remain low for some time given retail competition, slow wage growth
- The economy "Appeared likely" to grow faster this year than in 2017
- An appreciation in the A$ would slow expected acceleration in the economy
- Wages expected to pick up gradually as leading indicators pointed to more job gains
- Still spare capacity in labor market, underemployment at high levels
- High household debt creates uncertainty for consumption outlook
- Board noted the rise in US money market rates had flowed through to Australian rates
- Risk of escalation in global trade restrictions needed to be monitored closely
- Conditions in global economy positive, china debt levels an important risk
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