RBA minutes: Low inflation may offer scope to ease policy

The minutes of the January RBA meeting when interest rates were held steady at 2%, and in which the Central continued to let the door open for further easing if needed, have been released.

The minutes repeat most of the key themes shared last Feb 5th, when the RBA SoMP was published. In today's minutes, RBA said that "low inflation may offer scope to ease policy if necessary."

Key headlines

Low inflation may offer scope to ease policy if necessary

Very low interest rates supporting consumption, home building

Domestic data positive, reasonable prospects for faster economic growth

Stronger jobs growth had lowered unemployment forecast by around 0.5 ppt

Employment supported by service sector expansion, sluggish wages

Looking at whether improvement in employment lasts, impact of market turbulence

Past fall in a$ boosting demand for domestic production, service exports

Drag from slump in mining investment to lessen a little over 2016/17

Liaison suggested retail activity had picked up over xmas, jan sales period

China demand key in outlook for terms of trade, commodity prices

China to slow further, markets uncertain on beijing's ability to manage transition