The RBA minutes: Board prepared to ease policy further if needed to support growth, jobs
Tuesday, 15 October 2019 08:06 WIB | FISCAL & MONETARY |RBA

The Reserve Bank of Australia came with the Minutes for the RBA Board's 1 October meeting.

Members commenced their discussion of global economic conditions by noting that heightened policy uncertainty was affecting international trade and business investment. This had continued to be apparent in a range of indicators, including new export orders and investment intentions. Conditions in the manufacturing sector had remained subdued, partly because of ongoing US“China trade tensions. These tensions had led to a contraction in bilateral trade between the United States and China, which was resulting in the diversion of some activity to other economies. Members noted that the trade and technology disputes continued to pose significant downside risks to the global economic outlook.

The RBA is prepared to ease further if needed to support growth and jobs. AUD/USD is a touch lower (-0.15%) on the main take away points as follows:

Board judged case for easing at Oct meeting outweighed arguments against a move. Board prepared to ease policy further if needed to support growth, jobs. Reasonable to expect extended period of low rates would be required. Board members noted trend to lower rates globally.

Discussed possibility rate cuts might have less impact than in past. Judged lower rates would still have an impact through the A$. Members noted export demand had been supported by lower level of the A$. Discussed risk that low rates would over-inflate home, asset prices. Saw limited risks of excessive borrowing for now, but warranted monitoring.

Board discussed case for keeping rate cuts in reserve for emergencies. Decided lower level of rates best way to lessen impact of any negative shocks. Mining, housing sectors seemed to have reached "turning points". No sign as yet that household consumption responding to rate cuts, tax rebates. Strong jobs growth being met by equally strong increase in labour supply. Leading indicators point to slowdown in jobs growth in quarters ahead. China-US trade, tech disputes a significant downside risk to global outlook

The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the AUD.

Source : FXstreet

RELATED NEWS

RBA Highlights Recovery Uncertainties as Second Wave Threatens
Tuesday, 7 July 2020 14:06 WIB

Australia™s central bank chief highlighted worries among households and businesses about the health and economic outlook, as the nation™s successful run of Covid-19 containment was rocked by a new outbreak, damping the economy™s otherwise improving prospects. Reserve Bank of Australia Governo...

ECB's Lagarde: Economic recovery will be a complicated matter
Friday, 26 June 2020 15:19 WIB

European Central Bank (ECB) President Christine Lagarde, while presenting at an Online Summit organised by the European Business Leaders' Convention, said that we probably have passed the lowest point of the crisis. Additional quotes: Still cautious because of the second wave of infections. Economi...

Bank of England Steps Up Virus Fight With Bond-Buying Boost
Thursday, 18 June 2020 18:35 WIB

The Bank of England intensified its response to the fallout from the coronavirus by expanding its bond-buying program, taking another step in the uphill battle to lift the economy out of the worst recession in centuries. Policy makers led by Governor Andrew Bailey voted 8-1 to b...

SNB Focuses on Franc Intervention With Rates Kept on Hold
Thursday, 18 June 2020 14:48 WIB

The Swiss National Bank said aggressive foreign exchange interventions remain its main tool for pushing back against the appreciation in the franc caused by the coronavirus pandemic. Keeping interest rates unchanged, SNB chief Thomas Jordan reiterated that the currency is '...

Fed Powell Beats Drum For More Government Aid To Bolster Economy
Thursday, 18 June 2020 03:26 WIB

The U.S. economy is beginning to recover from the worst of the coronavirus crisis, but with some 25 million Americans displaced from work and the pandemic ongoing, it will need more help, Federal Reserve Chair Jerome Powell told lawmakers on Wednesday. With the road back from recession likely to ta...

ANOTHER NEWS
Dow ends nearly 370 points higher as Nasdaq logs another record close
Saturday, 11 July 2020 03:29 WIB Stocks ended higher in thin trade Friday, getting a lift from positive news on a coronavirus treatment. The Dow Jones Industrial Average rose around 369 points, or 1.4%, to end near 26,075, according to preliminary figures, while the S&P 500...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.