Reserve Bank of Australia September 2023 meeting minutes.
- Considered raising rates by 25 bps or holding steady at the September meeting
- Some further tightening may be required should inflation prove more persistent than expected
- Case to hold was stronger, recent data did not materially alter the economic outlook
- Economy still appears to be on a narrow path by which inflation returns to target, employment grows
- Members recognize the value of allowing more time to see full effects from past tightening on the economy
- Policy moves will be guided by incoming data and assessment of risks
- Concerned about productivity growth not picking up as anticipated, services inflation remaining sticky
- Fuel prices rose sharply in August, could boost headline inflation in Q3
- Members noted that the labour market remains tight, but could be at a turning point
- Scheduled mortgage payments rose to a historical high of 9.7% of household income in July, set to increase further
Headlines via Reuters
These two points:
- Fuel prices rose sharply in August, could boost headline inflation in Q3
- Scheduled mortgage payments rose to a historical high of 9.7% of household income in July, set to increase further
are interesting. Yes, the headline inflation rate will get a bump from rising fuel prices. The rise has continued into September. And discretionary spending is being cut in response to rising mortgage payments. Stick those two together and the outlook for consumption appears to be dire and is likely to weigh on economic growth.
The full text is here:
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Background here:
Economic calendar in Asia, Tuesday, 19 September 2023 - RBA September meeting minutes
Reserve Bank of Australia September meeting minutes are due soon - preview
The RBA cash rate vs. the quarterly and monthly CPIs.
