RBA monetary policy decision - 6 August 2019
- Prior 1.00%
- To adjust policy if needed to support sustainable growth
- Rates to remain low for an extended period of time
- To monitor developments in labour markets closely
- Outlook for global economy remains reasonable
- Conditions in housing market remains soft
- House prices are stabilising in Sydney and Melbourne
- Australian economy expected to grow at 2.5% in 2019
- Says AUD is at its lowest level in recent times
- To take longer-than-expected for inflation to reach 2%
- Will ease monetary policy further if needed
There isn't much change to the overall language as the key emphasis is the "if needed" passage and that remains in place. However, they did add this line into the statement:
It is reasonable to expect that an extended period of low interest rates will be required in Australia to make progress in reducing unemployment and achieve more assured progress towards the inflation target.
Overall, this continues to suggest that the RBA will be looking at data developments for future decisions and the next rate cut in Q4 still seems to be the most likely scenario.
AUD/USD is little changed on the decision, hovering at 0.6780 currently. No surprises.
