RBA Minutes: Board noted "Significant uncertainties" on the economic outlook


The minutes from the RBA Board’s 6 March meeting have arrived as follows, (Note: "The meeting was a day before Q4 GDP data that printed weaker than RBA expectations, which limits the value of the discussion on growth at least. Commentary on housing will also be noted with interest" - analysts at Westpac observed and explained):

  • Saw scenarios where might be appropriate to eventually raise rates, or cut rates;
  • Scenarios more evenly balanced than they had been last year;
  • Board agreed no strong case for near-term move in rates;
  • Awaiting new information to resolve tension between solid jobs market, soft gdp;
  • Labour market continued to improve, unemployment seen falling to 4.75 pct;
  • Slower consumption in nsw linked to drop in home prices, lower turnover in housing market;
  • Slowdown in home loans mainly due to softer demand, but tighter credit played a part;
  • Saw risk of "Marked slowing" in dwelling investment in one to two year's time;
  • Tighter credit constraining demand for off-the-plan, project homes;
  • Conditions in drought-hit farm sector to remain difficult in near term;
  • AUD had been broadly steady, within narrow range of recent years;
  • Trade tensions a continued source of uncertainty for world outlook.

Note: There was not much expected in the RBA minutes, with Lowe speaking post the meeting saying that he is watching the labour market for developments.

About the 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.

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

AUD/USD regained the smile…and the 200-day SMA

AUD/USD regained the smile…and the 200-day SMA

AUD/USD added to the positive start to the week and extended its bullish performance, surpassing the 0.6600 barrier and putting the critical 200-day SMA to the test.

AUD/USD News
EUR/USD rallies on Greenback weakness heading into US presidential election

EUR/USD rallies on Greenback weakness heading into US presidential election

EUR/USD benefited from a broad-market decline in the US Dollar as global markets brace for early polling outcomes from the US presidential election that kicked off on Tuesday. Fiber jumped two-thirds of one percent to claw back above the 1.0900 handle as investors hope for a market-positive outcome.

EUR/USD News
Gold gleams US election fears and soft US Dollar boosts prices

Gold gleams US election fears and soft US Dollar boosts prices

Gold prices increased during the New York session as Americans kept going to the polls amidst one of the closest of the US presidential elections this century. Risk appetite has improved, yet the golden metal post gains of over 0.22% due to uncertainty linked to election jitters and the Middle East.

Gold News
XRP could rise to $0.5608 despite weak on-chain data

XRP could rise to $0.5608 despite weak on-chain data

Ripple's XRP is trading near $0.5140 on Tuesday following declines in several of its on-chain data, which indicates declining investor interest. The remittance-based token could rally toward $0.5608 after crossing above the upper trendline resistance of a symmetry triangle.

Read more
US election day – A traders’ guide

US election day – A traders’ guide

Election day volatility: Brace for potential wild market swings. Election days bring opportunities, but also risks. Unclear results can increase volatility further.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures