The RBA announces its latest monetary policy decision – 3 September 2019
- Prior 1.00%
- To ease policy if needed to support sustainable growth
- It is reasonable to expect an extended period of low rates
- Risks are to the downside for the global economy
- Outlook for global economy is reasonable
- Global financial conditions remain accommodative
- Inflation is likely to be subdued for some time
- Outlook for consumption remains main domestic uncertainty
- Further lift in wages growth will be welcome
- AUD is at its lowest level of recent times
- Central scenario is for underlying inflation to be a little under 2% in 2020
At first glance, there isn’t any major changes to the statement as the RBA continues to keep the key passage of easing policy further “if needed”. This still puts November as the likely timeline for the central bank’s next move if current conditions continue to play out.
Essentially, nothing much has changed but the RBA is acknowledging some better conditions in the housing market at least but consumption/household debt and inflation remains a key problem for the economy still.
AUD/USD has moved up a little to 0.6710 from 0.6695 earlier but there isn’t much to suggest a significant move to the upside for now.