RBA Board Minutes

The minutes of the July board meeting were released yesterday. While similar to previous minutes it does seem to be a little more optimistic on the growth front. It acknowledges the international economy, while stabilising, remains vulnerable.

Another easing is still a possibility if inflation drops in a sustainable fashion but would be many months off. I always find the concluding paragraphs interesting and have pasted them here.

"In assessing the stance of monetary policy, members observed that the early and substantial easing of both monetary and fiscal policy had been effective in supporting demand, which, if anything, had been more resilient than expected. The full effects of policy measures would still be coming through for some time. Members noted that the current inflation outlook afforded scope for some further easing of monetary policy, if that were to be needed to give further support to demand at a later stage.
Accordingly, members judged the current stance of monetary policy to be consistent with fostering sustainable growth and low inflation, while leaving adequate flexibility to respond to developments as needed over the period ahead."