RBA SoMP: considered the option to continue to hold policy rates steady but decided a hike would provide more assurance on inflation; Whether further tightening of monetary policy will depend on data
ECONOMY
- The data received over recent months indicate that the domestic economy has been a bit stronger than previously thought and capacity utilisation remains high.
- The labour market remains tight and, while wages growth looks to have stabilised overall, unit labour costs are still growing very strongly.
- New loan approvals have been increasing and housing prices have been rising across the country.
- Consumer prices are rising briskly, particularly in market services and rents, and the inflationary pressures in these components are expected to take some time to dissipate.
INFLATION
- There are both upside and downside risks to the outlook for inflation.
- With inflation remaining high and forecast to decline more gradually than anticipated three months ago.
FORECASTS
Via RBA
Reaction details (00:50)
- AUD/USD fell from 0.6360 to around 0.6353 over two minutes.
10 Nov 2023 - 00:30- Fixed IncomeImportant- Source: RBA
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