Highlights
The Reserve Bank of Australia has published the minutes of its November 5 meeting. Officials at that meeting left their main policy rate, the cash rate, unchanged at 4.35 percent.
Consistent with the statement accompanying the decision, the minutes note that recent CPI data showed that government rebates had put downward pressure on headline inflation but that underlying inflation remained above the target range of two percent to three percent and was falling more slowly. Officials jusge tht inflation will not rerun sustainbkly to target until 2026. Officials also noted that household spending had been weaker than expected but that conditions in the labour market remained tight.
Reflecting these factors, the minutes show that officials concluded that conditions had not changed sufficiently to warrant a change in policy settings at this meeting. Officials also argued that because inflation has been above its target range for so long, there should be"minimal tolerance to accommodate a more prolonged period of high inflation", reaffirming that"monetary policy would need to be sufficiently restrictive until members were confident that inflation was moving sustainably towards the target range".
Officials concluded that it was not possible to rule anything in or out in relation to future changes in the cash rate target. Other public comments from officials have indicated that a cut in policy rates is unlikely in the near term.
Consistent with the statement accompanying the decision, the minutes note that recent CPI data showed that government rebates had put downward pressure on headline inflation but that underlying inflation remained above the target range of two percent to three percent and was falling more slowly. Officials jusge tht inflation will not rerun sustainbkly to target until 2026. Officials also noted that household spending had been weaker than expected but that conditions in the labour market remained tight.
Reflecting these factors, the minutes show that officials concluded that conditions had not changed sufficiently to warrant a change in policy settings at this meeting. Officials also argued that because inflation has been above its target range for so long, there should be"minimal tolerance to accommodate a more prolonged period of high inflation", reaffirming that"monetary policy would need to be sufficiently restrictive until members were confident that inflation was moving sustainably towards the target range".
Officials concluded that it was not possible to rule anything in or out in relation to future changes in the cash rate target. Other public comments from officials have indicated that a cut in policy rates is unlikely in the near term.
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.
