Highlights
The Reserve Bank of Australia has published the minutes of its February 6 meeting. Officials at that meeting left their main policy rate, the cash rate, unchanged at 4.35 percent for the second consecutive meeting after they increased it by 25 basis points in November.
Consistent with the statement accompanying the decision, the minutes note that recent CPI data showed a moderation in price pressures, but officials again expressed concerns that risks to the inflation outlook could delay how long it will take for headline inflation to fall back to their target range of two percent and three percent. They also remain concerned about domestic consumer spending, noting that it had been weaker than they had anticipated.
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 recent inflation data meant that"the risk of inflation not returning to the Board's target within a reasonable timeframe had eased". Although this suggests that a reduction in policy rates may be considered later in the year, in line with market expectations, officials stressed that they have not ruled out the potential for further policy tightening and reaffirmed that they will do"what is necessary" to return inflation to its target range.
Consistent with the statement accompanying the decision, the minutes note that recent CPI data showed a moderation in price pressures, but officials again expressed concerns that risks to the inflation outlook could delay how long it will take for headline inflation to fall back to their target range of two percent and three percent. They also remain concerned about domestic consumer spending, noting that it had been weaker than they had anticipated.
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 recent inflation data meant that"the risk of inflation not returning to the Board's target within a reasonable timeframe had eased". Although this suggests that a reduction in policy rates may be considered later in the year, in line with market expectations, officials stressed that they have not ruled out the potential for further policy tightening and reaffirmed that they will do"what is necessary" to return inflation to its target range.
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.
