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- December’s Reserve Bank of Australia monetary policy meeting: low interest rates supported growth in household consumption and dwelling investment
December’s Reserve Bank of Australia monetary policy meeting: low interest rates supported growth in household consumption and dwelling investment
The Reserve Bank of Australia (RBA) released its minutes from December monetary policy meeting on Tuesday. The RBA said that low interest rates supported growth in household consumption and dwelling investment, while the exchange rate was adjusting to the significant drop in key commodity prices.
The Australian output growth should strengthen gradually over the next two years, the RBA said.
Members said that there is spare capacity in the economy, including in the labour market.
Members also said that further interest rate cut may be needed.
"Members judged that the outlook for inflation may afford some scope for a further easing of monetary policy should that be appropriate to lend support to demand. The Board would continue to assess the outlook, and hence whether the current stance of policy would most effectively foster sustainable growth and inflation consistent with the target," the minutes said.
The RBA kept unchanged its interest rate at 2.00% in December.
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