The RBA held the official cash rate steady at its board meeting in June, as it had for every meeting since the cash rate was reduced in August 2016. The US Fed may be well into its rate rising cycle but so far the RBA has not shown any indication it is about to take the same path.
The minutes from the RBA’s latest meeting have now been released and analysts and economists did not find anything particularly controversial. As AMP Capital’s Shane Oliver put it, there were “no surprises”.
The RBA board covered the usual areas; global conditions, “had strengthened over the prior year”, local employment growth “had grown strongly” while inflation “remained low and was likely to remain so for some time.” The property market was less of a concern as APRA regulations, lower loan demand and tighter credit standards “had been helpful” in containing the build-up of household debt. Interest rates were “continuing to support the Australian economy.”