RBA Minutes

The RBA minutes from the March meeting have been released http://www.rba.gov.au/MonetaryPolicy/RBABoardMinutes/2009/rba_board_min_03032009.html

I've pasted the concluding two paragraphs below. These paragraphs came after a comprehensive summation of the global and domestic economy - none of it very pretty I have to say.

What I get from these last two paragraphs are that they were in two minds whether to ease or not. The last sentence implies to me that they intended to ease after this brief pause. Expect an easing next month.

Members further noted that the easing implemented over recent months was large by historical standards. These measures, together with very substantial fiscal policy measures, had been taken before official data were available to gauge the extent of economic weakness. Early indications were that the monetary and fiscal stimulus that had been applied to the economy was having an expansionary effect, but the size of this remained unclear and it would take some time for the full impact to come through.

The question for policy was whether further stimulus should be added at this meeting, or whether, having reduced rates at each meeting since September, the Board should pause for a further evaluation of the situation. Members could see reasonable cases for both courses of action. On balance, they judged that, having made a major change to monetary policy over the preceding several meetings in anticipation of weak economic conditions, the best course for this meeting was to leave the cash rate unchanged. Members believed this would leave adequate flexibility for policy at future meetings.