RBA: It's to early to hike the rates

Reserve Bank of Australia August monetary policy board meeting minutes

Board saw no strong case for a near-term move in interest rates

Next rate move likely to be up if progress made on unemployment, inflation

Bank to be source of stability and confidence by holding policy steady

AUD had fallen a little on US$, but TWI still within trading band of last two years

Household consumption supported by income growth in q2

Saw less uncertainty about the outlook for household consumption

Underlying inflation seen at 1.75 pct over 2018, rising to 2.25 pct in 2020

Govt spending expected to make significant contribution to economic growth out to 2020

Board members recognised effects of drought conditions on rural sector

Initial impact of drought likely boosted farm exports in q2, downside risk longer term

Bank funding conditions "generally accommodative" despite rise in money market rates

Risks to global outlook had shifted due to trade protectionism, US fiscal stimulus

Risk of faster fed hikes could lower AUD, support Australian economy

Source: Bloomberg Finance L.P.

Charts: Used with permission of Bloomberg Finance L.P.

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