RBA minutes: Board agreed there was not a strong case for near-term move in policy

The minutes of the Reserve Bank of Australia (RBA) April monetary policy meeting released today showed the policymakers see little reason for a near-term move in policy. 

Key points

• Board agreed there was not a strong case for near-term move in policy
• Given current circumstances, the board agreed with next move in rates likely to be up
• Progress on unemployment and inflation likely to be only gradual
• Inflation to remain low for some time given retail competition, slow wage growth
• The economy "Appeared likely" to grow faster this year than in 2017
• An appreciation in the A$ would slow expected acceleration in the economy
• Wages expected to pick up gradually as leading indicators pointed to more job gains
• Still spare capacity in labor market, underemployment at high levels
• High household debt creates uncertainty for consumption outlook
• Board noted the rise in US money market rates had flowed through to Australian rates
• Risk of escalation in global trade restrictions needed to be monitored closely
• Conditions in global economy positive, china debt levels an important risk