Highlights
The Reserve Bank of Australia has published the minutes of its March 19 meeting. Officials at that meeting left their main policy rate, the cash rate, unchanged at 4.35 percent for the third 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 further moderation in underlying 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 weakness could persist for longer than they have anticipated.
The minutes indicate that for the first time in nearly two years officials did not consider increasing policy rates at this meeting. Officials did, however, conclude that it is not appropriate to rule out or rule in any future changes to policy rates, up or down. They also 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 further moderation in underlying 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 weakness could persist for longer than they have anticipated.
The minutes indicate that for the first time in nearly two years officials did not consider increasing policy rates at this meeting. Officials did, however, conclude that it is not appropriate to rule out or rule in any future changes to policy rates, up or down. They also 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.
