An overview of the RBA report

Meeting Minutes of the Reserve Bank of Australia, May 2019. Here are the highlights:

• The reduction in interest rates will only be appropriate if the labor market improves
• We agree that the further fall in unemployment will keep pace with inflation
• It is important to keep track of the labor market also in the future
• According to the report, there is no "strong reason" for medium-term policy change
• The Bank is aware that economic forecasts are made on market assumptions that low interest rates
• The outlook is negative, with a policy loosening over the next six months
• Low interest rates will continue to have negative effects on AUD, which will reduce mortgage payments
• AUD is at its lowest levels in the past few years
• Some leading indicators for the labor market have "faded", making forecasts mixed
• Projections show a surplus on the labor market over the next few years
• Q1 inflation is much lower than expected, the mortgage market has a deflationary effect
• The risks to household consumption have increased
• GDP will be backed by strong exports and new mining investment projects
• The risks to the world economy are still strong
• Significant risks around China and trade negotiations

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