The outcome of today's Reserve Bank of Australia monetary policy board meeting
Leaves rates on hold, as expected
Quick headlines via Reuters :
- Says low inflation may provide scope for easier policy
- Reasonable prospects for economic growth
- Appropriate for monetary policy to be accommodative
- Assessing labour market, impact of volatility in global financial markets
- Inflation likely to remain low over next year or two
- AUD has continued its adjustment to changing economic outlook
- Low rates supporting demand
Nothing new from the RBA here really ... rates on hold, scope for more cuts (low inflation), continuing to assess the labour market and global volatility.
Yawn. AUD reacting appropriately by not doing very much at all, up a few tics or so.
What a fizzer.
The thing that sticks out to me is not much jawboning attempt for a lower AUD:
- The exchange rate has been adjusting to the evolving economic outlook.
Really? Is that all ya got?
Full text of the Statement by Glenn Stevens, Governor: Monetary Policy Decision
The full statement is very brief, it doesn't take much time to read at all and will give you a better picture than my summary can.
OK, maybe the 2nd thing that sticks out for me is the relative calmness with which the RBA is viewing the global economy:
- Recent information suggests that the global economy is continuing to grow, though at a slightly lower pace than earlier expected.
"Slightly lower pace"? That's seems pretty restrained given what we've been seeing and hearing. Should the RBA be a little more concerned?
Maybe they've seen tomorrow's GDP for Q4 and are unfussed ( I posted on the GDP here, what's expected ).