SUMMARY OF RBA MEETING MINUTES
Growth
- Growth is in line with the estimates over the first half of 2016.
- Interest-sensitive sectors were being supported by accommodative monetary policy.
- Activity in the traded sector continued to be supported by lower exchange rate.
Labour Market
- Employment growth had been steady at around 2 per cent in year-ended terms.
- Strong growth in part-time employment had been apparent in most states.
- Drop in full-time employment in mining-exposed states.
- Forward-looking indicators had been fairly consistent.
- Domestic cost pressures expected to remain low.
Housing Market
- Housing market conditions overall appeared to have eased.
- Dwelling construction cycle remained in a strong upswing.
- Housing prices had risen modestly and turnover had been below average.
- Credit growth had slowed over 2016.
Conclusion
Taking into account the recent data, and having eased monetary policy at its May and August meetings, the Board judged that the current stance of monetary policy was consistent with sustainable growth in the Australian economy and achieving the inflation target over time.
Reference:
http://www.rba.gov.au/monetary-policy/rba-board-minutes/2016/2016-09-06.html
What does it mean for the Aussie
Overall, the tone of the RBA remains neutral to slight bullish. There was no hint that the RBA is looking for another rate cut in the near to medium term; and this can potentially provide strength in the Aussie Dollar mainly due to carry trade interest.
However, from a technical perspective, we are seeing more of shorting opportunities from this recent rallies.
