Reserve Bank of Australia
Headlines via Reuters
No mention in minutes that board considered option to raise ratesBoard agreed it was
difficult to either rule in or out future changes in cash rateEconomic outlook
uncertain but risks seemed broadly balancedWould take “some
time” before board could be confident inflation returning to
targetUpside risks to
inflation had not yet materialised, while consumption was very weakInflation high but
gradually returning toward target, labour market easingGap between demand
and supply in economy “closing relatively quickly”Board judged demand
would continue to exceed supply for a timeLabour market a
little tighter than consistent with inflation at targetWage growth may have
peaked, but not expected to decline quicklyRecovery in
productivity needed to balance high unit labour costsOverall financial
conditions remained restrictive, particularly for households
Full text is here:
Minutes of the Monetary Policy Meeting of the Reserve Bank Board
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The minutes confirm the shift to less hawkish at the Bank that was evident on the day of the meeting. The March meeting left the cash rate unchanged:
RBA announce on hold cash rate at 4.35%, as expectedAUD/USD lower after RBA left its cash rate unchanged and changed wording on future moves
And, from Governor Bullock’s news conference on the day:
RBA’s Bullock: We’re making progress in fight against inflationRBA’s Bullock: We are responding to data as the data comes out
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This article was written by Eamonn Sheridan at www.forexlive.com.