The Australian dollar has ticked up a little on that 'rates not especially high' point in the October minutes.
Headlines via Reuters:
- Decision to raise rates by only 25bp was "finely balanced"
- Smaller move warranted by the scale of hikes already delivered, lags in policy
- The full impact of hikes yet to be felt in mortgage payments, wealth effect from falling house prices
- Higher rates abroad are likely to "significantly lower" global growth, lessen inflation
- Uncertain outlook argued for slower hikes for a time, would help hold public attention
- Further increases in rates are likely over the period ahead, rates not "especially high"
- Board emphasised the importance of keeping inflation expectations anchored
- Some further rise in wage growth would not be a concern if inflation expectations anchored
- Monthly CPI data confirmed a broad-based pick up in inflation, rents and utilities are expected to rise further
- Data suggest household consumption held up well in Q3, supported by very tight labour market
- A$ is still up on the year in trade-weighted terms, more important for inflation than the AUS/USD level
Earlier today from the RBA:
Full text: