The Minutes of the previous central bank board monthly monetary policy meeting were released today. In the minutes the RBA indicated that it was prepared to be patient and examine more economic data, including inflation figures due on Wednesday, before deciding to cut the cash rate again. The minutes of the meeting held on 7th April confirmed a cut had been discussed.
The minutes read, “Members also saw advantages in receiving more data, including inflation, to assess whether the economy was on the previous forecast path, and allowing more time for the economy to respond to the reduction in the cash rate earlier in the year.”
Despite comments from Governor Stevens overnight from New York, it seems that the RBA is concerned about fueling property further with an interest rate cut. Board members “remained alert to the possibility that low levels of interest rates could foster imbalances in the housing market”, the minutes said. “Although prices continued to rise rapidly in Sydney and, to a lesser extent, Melbourne, trends elsewhere were more varied.”
The next RBA board monthly monetary policy meeting will be held on 5 May 2015, at 2.30 pm AEST. The full minutes are available from the RBA’s website – click here.
