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16 Dec 2014
RBA minutes: Jawboning the Aussie
FXStreet (Guatemala) - The minutes from the previous central bank meeting have been released and the RBA continues to jawbone the currency explaining that the AUD is “Still above estimates of fundamental value”.
The minutes went onto say that a “Further fall in the Australian dollar is needed for the economy”. These remarks accompany Stevens’s previous mention that he would prefer to see the currency at 0.75C than 0.85c. The statement has no indication of an early cut in 2015.
Further key remarks:
"Prudent course likely to be period of rate stability."
"Board noted that market expected easing next year, discussed factors behind those market expectations."
"Forward indicators consistent with relatively moderate jobs growth
more to come."
"GDP growth to be below trend over 2015."
"Subdued labour market likely to weigh on consumption growth."
"Inflation outlook consistent with target."
The minutes went onto say that a “Further fall in the Australian dollar is needed for the economy”. These remarks accompany Stevens’s previous mention that he would prefer to see the currency at 0.75C than 0.85c. The statement has no indication of an early cut in 2015.
Further key remarks:
"Prudent course likely to be period of rate stability."
"Board noted that market expected easing next year, discussed factors behind those market expectations."
"Forward indicators consistent with relatively moderate jobs growth
more to come."
"GDP growth to be below trend over 2015."
"Subdued labour market likely to weigh on consumption growth."
"Inflation outlook consistent with target."