The minutes from the June 6 Reserve Bank of Australia monetary olicy board meeting
- Appropriate to keep accommodative stance of policy unchanged
- Watching labour and housing markets carefully
- RBA Board discussed how financial stability affected monetary policy, reviewed experience in US and Sweden
- Important to maintain close cooperation with other regulators, especially APRA
- House prices rising briskly in some markets, tentative signs pressure starting to ease
- RBA Board members noted would take time for tighter bank lending standards to impact housing market
- Low household income growth, high debt posed risks to outlook for consumption
- Wage growth to remain low for some time, noted isolated reports of higher pay deals
- Recent faster pace of jobs growth to continue, but underemployment still high
- Board still expected GDP growth to accelerate to 3 pct over time, despite soft Q1
- Liaison suggested retail conditions remained challenging
- Repeats a rising A$ would complicate economic adjustment
- Magnitude of bank levy not particularly large compared with typical movements in funding costs
Quick headlines via Reuters
Full text is here: Minutes of the June 2017 Monetary Policy Meeting of the Reserve Bank Board
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At the same time we got data from the Australian Bureau of Statistics for the Australian house price Index, Q2 of 2017:
- +10.2% y/y
- +2.2% q/q
