Highlights
The Reserve Bank of Australia has published the minutes of its July 8 meeting. Officials at that meeting left their main policy rate, the cash rate, unchanged at 3.85 percent.
Consistent with the statement accompanying the decision, the minutes show that officials are confident that risks to the inflation outlook remained balanced but now expect quarterly inflation in the three months to June will be stronger than they had previously expected. Having already cut policy rates by 50 basis points in recent months, concerns about near-term inflation prospects meant that officials were cautious about loosening policy too aggressively. As a result, the minutes noted that officials considered there was a"benefit of waiting for a little more information to confirm that inflation remains on track to be at 2.5 per cent on a sustainable basis".
As advised in the statement, the minutes confirm that the decision this month was not unanimous, with only six of the nine members voting to keep policy rates on hold. The minutes also advise that the RBA will note the record of votes at future meetings, without attributing them to named board members. With three of the nine members already supportive of an additional rate cut at this meeting, there is a good chance that a majority of members could support a rate cut at the next meeting, depending on CPI inflation data scheduled for next week.
Consistent with the statement accompanying the decision, the minutes show that officials are confident that risks to the inflation outlook remained balanced but now expect quarterly inflation in the three months to June will be stronger than they had previously expected. Having already cut policy rates by 50 basis points in recent months, concerns about near-term inflation prospects meant that officials were cautious about loosening policy too aggressively. As a result, the minutes noted that officials considered there was a"benefit of waiting for a little more information to confirm that inflation remains on track to be at 2.5 per cent on a sustainable basis".
As advised in the statement, the minutes confirm that the decision this month was not unanimous, with only six of the nine members voting to keep policy rates on hold. The minutes also advise that the RBA will note the record of votes at future meetings, without attributing them to named board members. With three of the nine members already supportive of an additional rate cut at this meeting, there is a good chance that a majority of members could support a rate cut at the next meeting, depending on CPI inflation data scheduled for next week.
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.
