Minutes of the February policy meeting of the Reserve Bank of Australia:
- AUD still above most estimates of fundamental value
- Board discussed case for waiting until March to cut rates
- Decided a February easing allowed additional early communication in the quarterly SoMP
- Lower a$ needed for economy, further sustained fall would lift growth and inflation
- Board noted a$ would be affected by monetary policy expectations at home and abroad
- Revival in non-mining investment necessary for above-trend growth, but confidence lacking
- Pick up in household consumption also needed, lower fuel prices to help offset soft wages
- Unemployment expected to peak later and little higher than previously forecast
- Spare capacity, productivity growth had lowered unit labour costs and inflation outlook
- Housing market would bear careful watching given rising prices, investment lending
- Uncertain on outlook for chinese property market, impact on commodity demand
Full text is here: Minutes of the Monetary Policy Meeting of the Reserve Bank Board