Board considered keeping rates unchanged, cutting by 25 bps or 50 bpsDecided case for 25 bps cut was stronger one, preferred policy to be cautious and predictableInflation still not at mid-point of target band, labour market still tightBoard agreed developments in domestic economy alone warranted a rate cutProgress on inflation meant policy did not need to be as restrictiveSome downside risk that domestic household consumption might not pick upLarger move might offer more insurance against adverse global scenariosUS trade policy was a significant and adverse development for global outlookBoard not persuaded that 50 bps was needed, US tariffs had not yet affected Australian economyWould be challenging for business, households if aggressive easing had to be reversedBoard judged not yet time to move monetary policy to an expansionary settingExpansionary policy might be needed if worst of global trade scenarios eventuatedPolicy well placed to respond decisively if international devlopments warranted it
The RBA discussion of a 25 vs. 50bp rate cut is getting some attention., but they did tell us that on the day so its not a new piece of information in the minutes;
RBA cut rates as expected, AUD falls on 50 bps debateReserve Bank of Australia Governor Bullock
This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
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