FX.co ★ No Urgency for Further Rate Cuts: RBA Minutes

According to the minutes from its latest meeting, the Reserve Bank of Australia (RBA) deemed it fitting to maintain the existing cash rate during its September session. The members evaluated current data, August forecasts, and the extent of policy restrictiveness, concluding there was no necessity for an immediate rate reduction. Although they acknowledged that the policy was somewhat restrictive, they emphasized that the full effects of earlier easing were still permeating the economy, as evidenced by a rise in housing prices and credit growth. The board noted that the August rate cut had successfully eased financial conditions, resulting in reduced bank funding costs, lower lending rates, and diminished mortgage payments. The transmission of policy to financial conditions was consistent with previous easing cycles. In their discussions, members considered a balance of risks: stronger-than-expected consumption and capacity pressures on one side, and weak sentiment, sluggish employment, and decelerating wage growth as potential downside risks. The board reiterated that future decisions would be approached with caution and guided by data.