RBA minutes: Further policy action not limited by absence of guidance

FXStreet (Bali) - The minutes of the May RBA meeting when interest rates were cut by 25bp to 2% but the explicit easing bias was removed are out, with the Central Bank noting that scope for further policy action is not limited by the absence of guidance.

Key headlines - via Reuters

Board discussed whether to cut in may or wait for june meeting

Decided a move in may could better be communicated through the quarterly somp

Board agreed statement would not include any forward guidance on rates

Board felt lack of guidance did not limit scope for action at future meetings

Lower a$ both likely and necessary to help rebalance economy

Economic growth seen below trend, unemployment higher for longer

Discussed possibility slow wages growth could limit rise in unemployment

Latest rate cut to support encouraging trends in household demand

While concerned at home prices in sydney, noted rest of country much more muted

Growth in home, investment credit appeared to have stabilised

Recent economic data positive, but outlook for business investment weaker

Expected fiscal consolidation by govt to weigh on domestic demand

China growth had slowed, saw weakness in property market as a significant risk