Highlights
The Reserve Bank of Australia has published the minutes of its December 10 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 monthly 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. Officials judge that inflation will not return sustainably to target until 2026. Officials also noted that GFP data 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. Although they considered upside risks to inflation to have diminished since their previous meeting, they warned that it remains too soon to be confident that inflation was moving sustainably towards the target range". Officials also reiterated that they had"minimal tolerance to accommodate a more prolonged period of high inflation than currently envisaged This suggests that officials will remain reluctant to ease policy until they become more confident about the inflation outlook.
Consistent with the statement accompanying the decision, the minutes note that recent monthly 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. Officials judge that inflation will not return sustainably to target until 2026. Officials also noted that GFP data 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. Although they considered upside risks to inflation to have diminished since their previous meeting, they warned that it remains too soon to be confident that inflation was moving sustainably towards the target range". Officials also reiterated that they had"minimal tolerance to accommodate a more prolonged period of high inflation than currently envisaged This suggests that officials will remain reluctant to ease policy until they become more confident about the inflation outlook.
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.
