RBA minutes: Low inflation may offer scope to ease policy

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 16, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The minutes of the January RBA meeting when interest rates were held steady at 2%, and in which the Central continued to let the door open for further easing if needed, have been released.

    The minutes repeat most of the key themes shared last Feb 5th, when the RBA SoMP was published. In today's minutes, RBA said that "low inflation may offer scope to ease policy if necessary."

    Key headlines

    Low inflation may offer scope to ease policy if necessary

    Very low interest rates supporting consumption, home building

    Domestic data positive, reasonable prospects for faster economic growth

    Stronger jobs growth had lowered unemployment forecast by around 0.5 ppt

    Employment supported by service sector expansion, sluggish wages

    Looking at whether improvement in employment lasts, impact of market turbulence

    Past fall in a$ boosting demand for domestic production, service exports

    Drag from slump in mining investment to lessen a little over 2016/17

    Liaison suggested retail activity had picked up over xmas, jan sales period

    China demand key in outlook for terms of trade, commodity prices

    China to slow further, markets uncertain on beijing's ability to manage transition
    For more information, read our latest forex news.

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