RBA Minutes: More new language - Rabobank

Analysts at Rabobank point out that in the just released RBA’s February minutes, we got some more new language.

Key Quotes

“After so many copy-and-paste conclusions before now, the final paragraph stated:

“Members would continue to assess the outlook carefully. However, given that further progress in reducing unemployment and lifting inflation was a reasonable expectation, members agreed that there was not a strong case for a near-term adjustment in monetary policy. Rather, they assessed that it would be appropriate to hold the cash rate steady and for the Bank to be a source of stability and confidence while further progress unfolds. Members judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.”

“In other words, the RBA aren’t talking more strongly about cutting rates yet because they still think wages will pick up into a new-normal housing collapse, and because they believe it shows more confidence to do nothing.”