RBA minutes: Uncertain economic outlook, period of stability for rates

FXStreet (Bali) - The minutes of the last monetary policy by the Reserve Bank of Australia were just published, with the central bank noting that uncertainties over the economic outlook remain, also adding that the most prudent course likely to be period of stability for rates.

Main headlines (courtesy of Reuters)

Most prudent course likely to be period of stability for rates

Board members noted "significant uncertainties" around growth forecast

Members felt it important to consider risks to the forecast as well as central case

A$ remained high by historical standards, offering less support to economy

Gdp growth likely slowed to moderate pace in q2, seen below trend over 2014/15

Falling mining investment, fiscal consolidation, high a$ to restrain growth

Signs of improvement in non-mining investment; resource exports to grow strongly

Home building likely to stay strong, home price inflation still robust

Signs of pick in labour demand, but would take some time before unemployment fell

Notable degree of spare capacity in labour market to keep wages growth subdued

Inflation pressures expected to ease, keep inflation consistent with target

Rates on housing, business loans continued to fall; added to noticeable easing in conditions