[Sydney 17th Reuters]-A summary of the agenda announced by the Reserve Bank of Australia (Central Bank, RBA) on the 17th shows that when the central bank decided to hold interest rates last September, the labor market surplus capacity and recent housing It became clear that the upward trend of the market was considered.
At the September 3 meeting, the central bank held the official cash rate of the policy rate at a record low of 1%. [nL3N25U15J]
According to the agenda, the central bank will consider further policy relaxation as needed to support growth and achieving the 2-3% inflation target.
The financial market almost completely incorporates the view that interest rates will be reduced to 0.5% by February due to additional easing during the year.
The agenda of the agenda is that “we will take additional monetary easing measures if necessary to ascertain economic trends at home and abroad, such as labor market conditions, and to help achieve sustainable economic growth and long-term inflation targets”.
Looking ahead, the central bank considers it reasonable to expect long-term low interest rates to achieve employment and inflation targets.
According to the agenda, the central bank discussed the labor market. Although domestic employment continues to grow strongly, the Australian unemployment rate remains high at 5.2%. At the same time, wage growth is still constrained and there are few signs of increased wage pressure.
On the other hand, in the domestic housing market, the number of mortgage approvals has increased, and the rate of successful bids has risen, showing signs of recovery.
The central bank pointed out that the prolonged US-China trade war amplified the downside risks of global economic growth. In addition, we discussed in detail how overseas financial conditions will affect Australia.
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