The minutes of September 4 RBA meeting provided practically no surprise at all. most importantly, RBA reiterated that “the next move in the cash rate would more likely be an increase than a decrease.” However, “there was no strong case for a near-term adjustment in monetary policy.”
RBA also noted that a few global central banks including the Fed were expected to continuing rate hikes. This had been reflected in the markets, “most notably a broad-based appreciation of the US dollar” that “raised risks” for some, especially for “fragile emerging” markets. However, “the modest depreciation of the Australian dollar was helpful for domestic economic growth.”
The central bank also noted that there were “still significant tensions around global trade policy” that represented a “material risk” to the global outlook.
Also from Australia, house price index dropped -0.7% qoq in Q2, matched expectations.