ANZ say the minutes of the Reserve Bank of Australia November meeting released didn't add a lot to our understanding of the Board's thinking.
However, Lowe's speech on 'Recent Trends in Inflation' shortly after the release of the minutes was of more interest.
ANZ's key takeaways from the RBA Board minutes and Governor Lowe, speech:
- the upcoming review of monetary policy since March 2020
- the RBA's estimate of the neutral rate as being 2.5% or higher
- the RBA's willingness to "look through" inflation of 3% or more if it is not accompanied by stronger wages growth
- the implications of a flat Phillips curve when the RBA does start to lift the cash rate
- Lowe 's weaker wording around a rate bike in 2024 as "still plausible."
The relevant posts are here: