RBA Rate Decision
Written November 30, 2009 at 10:41 PM EST by John Teister
The RBA has raised their cash rate from 3.50% to 3.75%. The market had a muted reaction to the release with the AUD trading lower against the USD. The RBA meeting minutes are as follows:
- Financial markets have improved considerably.
- Recovery is much quicker in China and the rest of Asia.
- Australian economy is in a gradual recovery.
- The rate rise is to keep inflation consistent with target.
- The board moved at recent meetings to cut stimulus.
- Public infrastructure spending is supporting demand.
- 2010 growth is in line to trend.
- There are early signs of recovery in the labor market.
- Inflation is likely to be close to its target.
- Jobless rate is to peak at a lower level than expected.
- Outlook remains similar to November statement.
- Inflation rate has declined from peak.
- Household wealth has had noticeable recovery.
- Sees moderation of inflation in near term.
- Housing credit is expanding at a solid pace.
- Sees inflation consistent with 2010 target.
- House prices have risen significantly this year.
- Rise in interest rate will have an impact on containing prices.
- The AUD rise will damp trade sector.
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