Highlights
The Reserve Bank of Australia has published the minutes of its April 1 meeting. Officials at that meeting left their main policy rate, the cash rate, unchanged at 4.10 percent.
Consistent with the statement accompanying the decision, the minutes note that officials remained confident that underlying inflation was"tracking in line" to return to their target range of two percent to three percent by mid-2025 and to settle in that range going forward. Officials also judged that domestic risks to the growth outlook had not changed materially since their previous meeting in February.
The minutes also note, however, that officials were increasingly concerned about external risks to the growth outlook, highlighting the potential for an escalation in trade tensions to disrupt global trade and discourage spending and investment by consumers and businesses. Although they acknowledged that the impact on Australia could be significant, they concluded that there was not yet enough information to prompt a major change in the outlook.
Reflecting these considerations, officials concluded that no further rate cut was warranted at this meeting. Although they provided little indication that they are ready to ease policy again in coming meetings, they"emphasised the need to be cautious and alert to the evolving economic outlook", suggesting that global trade tensions will be a major focus ahead of their next policy meeting. Nevertheless, officials stressed that their highest priority is to meet their inflation objectives and will do what is necessary to achieve that outcome.
Consistent with the statement accompanying the decision, the minutes note that officials remained confident that underlying inflation was"tracking in line" to return to their target range of two percent to three percent by mid-2025 and to settle in that range going forward. Officials also judged that domestic risks to the growth outlook had not changed materially since their previous meeting in February.
The minutes also note, however, that officials were increasingly concerned about external risks to the growth outlook, highlighting the potential for an escalation in trade tensions to disrupt global trade and discourage spending and investment by consumers and businesses. Although they acknowledged that the impact on Australia could be significant, they concluded that there was not yet enough information to prompt a major change in the outlook.
Reflecting these considerations, officials concluded that no further rate cut was warranted at this meeting. Although they provided little indication that they are ready to ease policy again in coming meetings, they"emphasised the need to be cautious and alert to the evolving economic outlook", suggesting that global trade tensions will be a major focus ahead of their next policy meeting. Nevertheless, officials stressed that their highest priority is to meet their inflation objectives and will do what is necessary to achieve that outcome.
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.
