RBA minutes: Talks up the economy, but maintains scope for further easing

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 15, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The minutes from the Reserve Bank of Australia’s (RBA) Dec 1 meeting released last minutes, reiterates that ‘the AUD is adjusting to decline in commodity prices” while leaving further scope for easing in wake of softer price pressures.

    Key points from the RBA minutes:

    Judged recent economic data had generally been positive when holding rates at 2 pct

    Reiterate inflation may afford some scope for further easing if needed

    A$ adjusting to significant declines in commodity prices

    RBA expected economy to strength gradually as drag from mining investment diminished

    Drag from mining to peak in 2015/16 financial year

    Low rates supporting household demand, home building

    Liaison pointed to improving retail sales, faster pace of household consumption

    Overall conditions still quite accommodative despite rise in bank mortgage rates

    Stronger employment growth, leading indicators pointed to more gains ahead

    China outlook clouded by industrial overcapacity, stock of unsold homes
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