Highlights
The Reserve Bank of Australia has published the minutes of its September 5 meeting. Officials at that meeting left their main policy rate, the cash rate, unchanged at 4.10 percent for the third consecutive month after having increased policy rates by 400 basis points since May 2022.
Consistent with the statement accompanying the decision, the minutes note that recent data had shown a further decline in headline inflation. Although officials expect energy prices will put renewed upward pressure on headline inflation in the near-term, they expect its downward trend to resume by the end of the year. Officials also noted that incoming data had continued to show weakness in economic activity, reflecting the impact of previous policy tightening. Looking forward, they highlighted both downside risks to growth and upside risk to the inflation outlook.
Reflecting these uncertainties, the minutes show that officials, as they had at their previous meeting, considered another increase of 25 basis points as well as leaving rates on hold this month. Despite their ongoing concerns about upside risks to the inflation outlook, however, officials concluded by noting"the value of allowing more time to see the full effects of the tightening of monetary policy since May 2022, given the lags in the transmission of policy through the economy." They reaffirmed, however, that they will do"what is necessary" to return inflation to its target range and again advised that it may be necessary to tighten policy further in coming months.
Consistent with the statement accompanying the decision, the minutes note that recent data had shown a further decline in headline inflation. Although officials expect energy prices will put renewed upward pressure on headline inflation in the near-term, they expect its downward trend to resume by the end of the year. Officials also noted that incoming data had continued to show weakness in economic activity, reflecting the impact of previous policy tightening. Looking forward, they highlighted both downside risks to growth and upside risk to the inflation outlook.
Reflecting these uncertainties, the minutes show that officials, as they had at their previous meeting, considered another increase of 25 basis points as well as leaving rates on hold this month. Despite their ongoing concerns about upside risks to the inflation outlook, however, officials concluded by noting"the value of allowing more time to see the full effects of the tightening of monetary policy since May 2022, given the lags in the transmission of policy through the economy." They reaffirmed, however, that they will do"what is necessary" to return inflation to its target range and again advised that it may be necessary to tighten policy further in coming months.
Definition
The Reserve Bank of Australia (RBA) publishes minutes of its meetings with a two week lag. The text expands on the statement published two weeks earlier at the time of the announcement.
Description
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.
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.
