RBA minutes: Dificult to judge if low rates enough to offset mining investment

FXStreet (Bali) - Minutes of the last monetary policy meeting of the RBA were just published, with the most unexpected comment being that at present it remains difficult to judge if low rates are enough to offset mining investment and fiscal tightening, reiterating that policy will likely stay accomodative for some time yet, adding that AUD remains high given fall in commodity prices.

Key Quotes - via Reuters

Australia c.bank minutes: policy likely to stay accommodative for some time yet

Difficult to judge if low rates enough to offset mining investment, fiscal tightening

These "uncertainties" would likely take some time to resolve

Repeats a$ high by historical standards, especially given fall in commodity prices

Lower iron ore price still profitable for australian miners, not so for some others

Economic growth to be below trend for next year or so, inflation within target band

Demand for labour had improved, but employment growth likely to be only moderate

Spare labour capacity to keep wage growth restrained over the year ahead

Budget tightening as expected over next two years, more substantial afterward

Noted sharp fall in surveys of consumer confidence, doubted their predictive power

Liaison with retailers suggested sales growth slowed further in may

Significant recovery underway in home building, non-mining investment still subdued