Highlights
The Reserve Bank of Australia has published the minutes of its August 12 meeting. Officials at that meeting cut their main policy rate, the cash rate, by 25 basis points to 3.60 percent. These minutes show that further rate cuts are likely in the near-term.
Consistent with the statement accompanying the decision, the minutes show that officials consider the outlook for inflation to be little changed from their previous meeting. They expect headline inflation to pick up slightly later this year but then fall back to around the mid-point of their target range of two to three percent. Officials also expressed optimism that global trade tensions will have only a limited impact on economic growth.
As advised in the statement, the minutes confirm that the decision this month was unanimous, with all nine of the nine members voting to cut policy rates. Officials did consider, however, the option of leaving rates on hold.
Looking forward, officials advised that further rate reductions are likely"over the coming year". Officials considered the relative merits of a gradual or"slightly faster" pace of policy easing but concluded that itis not yet possible to judge which of these two scenarios is more likely. Nevertheless, the minutes clearly indicate that officals expect to lower rates further in coming months.
Consistent with the statement accompanying the decision, the minutes show that officials consider the outlook for inflation to be little changed from their previous meeting. They expect headline inflation to pick up slightly later this year but then fall back to around the mid-point of their target range of two to three percent. Officials also expressed optimism that global trade tensions will have only a limited impact on economic growth.
As advised in the statement, the minutes confirm that the decision this month was unanimous, with all nine of the nine members voting to cut policy rates. Officials did consider, however, the option of leaving rates on hold.
Looking forward, officials advised that further rate reductions are likely"over the coming year". Officials considered the relative merits of a gradual or"slightly faster" pace of policy easing but concluded that itis not yet possible to judge which of these two scenarios is more likely. Nevertheless, the minutes clearly indicate that officals expect to lower rates further in coming months.
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.
