Reserve Bank of Australia minutes of the July 2017 meeting

  • Judged steady policy stance consistent with growth, inflation targets
  • Saw welcome improvement in world economy, number of central banks more positive
  • "Nevertheless" domestic labour, housing markets continued to warrant careful monitoring
  • Repeats a rising A$ would complicate economic rebalancing
  • Australian economic data for Q2 had generally been positive
  • Data suggest gdp growth increased in Q2, household consumption picked up
  • Jobs data positive, provided further confirmation of improvement in labour market
  • Recent rise in employment to support household incomes, spending
  • underemployment still elevated, wage pressures subdued
  • Fiscal policy to be more expansionary in 2017/18 than previously expected
  • Stronger infrastructure spending to have significant positive spillovers to economy
  • Too early for tighter lending rules to have full effect on housing market
  • RBA estimates neutral real rate had fallen to around 1 pct, neutral nominal rate at 3.5 pct

Quick Headlines via Reuters

Market taking note of the 'neutral rate' at 3.5% comment .... liking the AUD as a result

Full text:

Minutes of the July 2017 Monetary Policy Meeting of the Reserve Bank Board

--

The big news is from the US, politics (natch):

USD getting sold off on the imminent demise of the Republican health care bill: