RBA minutes: Stance of monetary policy consistent with sustainable growth

The minutes of the Sept RBA meeting when interest rates were held unchanged at 1.75% have been released.

As the RBA minutes notes: "Taking into account the recent data, and having eased monetary policy at its May and August meetings, the Board judged that the current stance of monetary policy was consistent with sustainable growth in the Australian economy and achieving the inflation target over time."

On the employment front, the RBA observes: "The unemployment rate had been little changed at around 5¾ per cent over 2016 and employment growth had been steady at around 2 per cent in year-ended terms. Strong growth in part-time employment had been apparent in most states, while full-time employment had fallen in the mining-exposed states. Forward-looking indicators had been consistent with only a slight change in the unemployment rate in coming months. Domestic cost pressures, including wage growth, had remained low and were expected to remain so for some time."

Key headlines

- Curr monpol stance consistent with sustainable growth

- Stance consistent with achieving infla target over time

- Peak mining invest detraction fm gdp occurred in 2015-16

- Some signs of improvement in parts of mining industry

- Board noted terms of trade rose in june quarter

- Forward indicators point to little change in jobless rate

- Holds spending response to lower rate likely delayed

- Housing mkt indicators point to weaker conditions vs yr ago

- Growth eased a little further in china

- Some easing of growth in financing to real econ in china

- Lower aud aiding actvity but rising aud could complicate