RBA November meeting minutes: No strong case for a near term move

The minutes of the Reserve Bank of Australia's (RBA) November monetary policy meeting released a few minutes before press time reiterated that while the next move in cash rates is likely to be on the higher side, there is no strong case for a near-term move.

Key points (Source: Reuters)

• members noted average real earnings had not risen for six years, remained a key uncertainty
• increase in wages growth necessary for inflation to reach the target range
• impact of slow incomes growth, high debt "warranted close monitoring"
• employment stronger than expected, unemployment to fall to 4.75% by mid-2020
• members noted could be "more pronounced decline" in unemployment in the near term
• fall in the AUD over 2018 likely to have been helpful for domestic economic growth
• data pointed to further solid GDP growth in the Sept qtr, to avg 3.5 pct over 2018 and 2019
• growth to be supported by accommodative monetary policy, stronger terms of trade
• Sydney and Melbourne housing markets had eased, credit tighter than has been for some time
• trade protectionism remained a significant risk to the global economy
• forecasts assumed a small negative impact on trading partner growth from tariffs