RBA Minutes: Domestic and international outlook had evolved as the Bank expected - TDS

Research Team at TDS, notes that there was no market impact but the RBA Minutes of the Sep meeting revealed that the domestic and international outlook had evolved as the Bank expected in its Aug SoMP.

Key Quotes

“That said, it’s worth highlighting two points. First, Q2 GDP released the day after the RBA Sep meeting showed a sharp drop in consumption growth, from 0.8%/qtr to 0.4%/qtr, but the RBA expected consumption growth to remain at long term average.  Second, on the job front, liaison contacts reported employers had been taking a cautious approach to hiring.

A few movements at the RBA following Phil Lowe’s elevation to Gov. and Guy Debelle’s new Deputy Gov. posting with Christopher Kent appointed as the Assistant Gov, Financial Markets, filling Guy Debelle’s old shoes and Michelle Bullock is the Assistant Gov, Financial System Stability, following Malcolm Edey’s decision to retire.

The Q2 House Price Index rose 2%/qtr to be +4.1%/yr, less than the 5.1%/yr expected. Some easing was expected given regulators’ curbs on lending to investors, but two cuts in the past 4 months has helped lift clearance rates and provide a new impetus to the property market.”