AU: RBA Meeting Minutes

Mon Jul 20 20:30:00 CDT 2015

The Reserve Bank of Australia published minutes of its monetary policy meeting held earlier this month. At that time, the RBA left its policy interest rate unchanged at 2 percent. In the minutes, the Board said that the unchanged cash rate was correct in light of current and prospective conditions. They will assess economic and financial conditions as they become known. Data is expected to inform if current monetary stance will foster sustainable growth. It noted that the decline of the Australian dollar in trade weighted terms was more modest than the currency's decline against the U.S. dollar. A further decline is likely necessary for balanced growth. It noted that inflation is well contained and will likely remain so going forward.

Spare capacity remains based on labour market data. The RBA expects non-mining business investment to be subdued over the coming year. It said that the strength in first quarter GDP will likely not carry through to the second quarter. The Board noted that the spillover from Greece and China's equity plunge need close watching.

The RBA issues minutes of its meetings with a two week lag.

Although the RBA's Reserve Bank Board issues a detailed statement at the conclusion of its monthly meetings, investors also look to the minutes for a more detailed description of current economic outlook both domestically and abroad along with the latest RBB policy thinking.

It is only recently that the RBA has released meeting minutes. At the conclusion of their December 2007 meeting, the RBA announced several changes to its communications policy. Previously, a statement was released only if a policy change was made. Now a statement is released at the conclusion of every meeting. Another change concerned the timing of the policy announcement. Rather than waiting until the next day, the announcement occurs immediately after the conclusion of the meeting. In addition, minutes are now released two weeks after the meeting.