Highlights
The Reserve Bank of Australia has published the minutes of its November 4 meeting. Officials at that meeting left their main policy rate, the cash rate, on hold at 3.60 percent.
Consistent with the statement accompanying the decision, the minutes note that officials were concerned about recent increases in headline inflation and the near-term outlook. Officials revised up both their near-term and medium-term inflation forecasts earlier this month and the minutes today confirm that officials were concerned that some part of the recent increase in price pressures might prove persistent. The minutes also note upside and downside risks to the growth outlook.
Reflecting these considerations, officials concluded that a further rate cut was not warranted at this meeting. They also consider that they could afford to be patient while assessing what the incoming data reveal about their judgements on the extent of spare capacity, the outlook for the labour market and the degree of restrictiveness of monetary policy. Officials reiterated that their highest priority is to meet their inflation objectives and that they will do what it considers necessary to achieve that outcome.
Consistent with the statement accompanying the decision, the minutes note that officials were concerned about recent increases in headline inflation and the near-term outlook. Officials revised up both their near-term and medium-term inflation forecasts earlier this month and the minutes today confirm that officials were concerned that some part of the recent increase in price pressures might prove persistent. The minutes also note upside and downside risks to the growth outlook.
Reflecting these considerations, officials concluded that a further rate cut was not warranted at this meeting. They also consider that they could afford to be patient while assessing what the incoming data reveal about their judgements on the extent of spare capacity, the outlook for the labour market and the degree of restrictiveness of monetary policy. Officials reiterated that their highest priority is to meet their inflation objectives and that they will do what it considers 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.
