Earlier posts on the November meeting minutes:
This now, via Westpac:
- There were no major surprises in the minutes of the Monetary Policy Meeting of the Reserve Bank Board for November.
- However, the general tone of the minutes seems somewhat more subdued than we have seen in recent reports.
Westpac concludes their note with:
- the Board continues to highlight the need to manage risks associated with high and rising household debt. Markets, which continue to expect a rate hike next year are probably relying on that concern.
- Certainly the inflation environment, as assessed by the Bank itself, does not support the case for higher rates.
- However, while a modest lift in leverage might evolve over the next year that will be driven by weak income growth since credit growth is already slowing and housing conditions are easing. A policy response to further weaken credit growth and weigh on income growth seems inappropriate.
- Westpac continues to expect that rates will remain on hold over the course of 2018 and 2019.
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My quick take on the minutes was 'dovish'. Despite this, WPAC still looking for 'on hold' right through 2019.
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And, don't forget.... More still to come from the RBA - Governor Lowe to speak