Highlights
The Reserve Bank of Australia has published the minutes of its December 5 meeting. Officials at that meeting left their main policy rate, the cash rate, unchanged at 4.35 percent after they increased it by 25 basis points at their previous meeting in November.
Consistent with the statement accompanying the decision, the minutes note that the most recent monthly CPI data showed a moderation in price pressures, but officials expressed concerns about the outlook for service price inflation. Officials also remain uncertain about how quickly headline inflation will fall back to their target range of two percent and three percent. The outlook for domestic consumer spending was again identified as a key risk to the officials' growth forecasts.
Reflecting these uncertainties, the minutes show that officials considered another increase of 25 basis points in addition to leaving rates on hold. However, despite their concerns about upside risks to the inflation outlook, officials concluded that"there was sufficient value in waiting for further data to assess how the balance of risks was evolving and how best to balance these risks when setting policy". Officials, however, reaffirmed their willingness to do"what is necessary" to return inflation to its target range, and again indicated that it may be necessary to tighten policy further in coming months.
Consistent with the statement accompanying the decision, the minutes note that the most recent monthly CPI data showed a moderation in price pressures, but officials expressed concerns about the outlook for service price inflation. Officials also remain uncertain about how quickly headline inflation will fall back to their target range of two percent and three percent. The outlook for domestic consumer spending was again identified as a key risk to the officials' growth forecasts.
Reflecting these uncertainties, the minutes show that officials considered another increase of 25 basis points in addition to leaving rates on hold. However, despite their concerns about upside risks to the inflation outlook, officials concluded that"there was sufficient value in waiting for further data to assess how the balance of risks was evolving and how best to balance these risks when setting policy". Officials, however, reaffirmed their willingness to do"what is necessary" to return inflation to its target range, and again indicated 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.
