The Reserve Bank of Australia (RBA) published the minutes of its August 6th, 2019 monetary policy meeting on Tuesday, with the key headlines found below.
AUD fall to support exports, tourism.
Board would consider further policy easing if needed.
To assess developments in domestic, global economies before considering easing.
Reasonable to expect "extended period" of low interest rates.
Risks to economy tilted to downside in near term, more balanced further out.
Board reviewed experience of developed nations with unconventional monetary policy
Noted a package of measures tended to be more effective than single steps.
AUD at lowest level in some years, recent fall to support exports, tourism.
Few signs of inflationary pressures emerging, downside risks to some CPI components.
More spare capacity in labour market than previously thought, to limit wage growth.
Saw firmer GDP growth in Q2, outlook for consumption more balanced than for some time.
Consumption supported by tax rebates, stabilisation in housing market.
Escalation in china - us trade dispute a downside risk to global growth.
Global companies had already significantly revised down investment intentions.
Further monetary easing "widely expected" around the world.
The AUD/USD pair kept its recovery intact from 0.6755 lows, as the RBA minutes had little impact on the Aussie dollar.
About RBA minutes
The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the AUD.
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