It said “this information would allow the Board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate”.
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The RBA voted to keep its benchmark interest rate at 1.75% earlier this month.
However, the market has put two and two together after release of the more detailed RBA minutes and concluded that the probability of an August rate cut has increased.
The central bank’s economic outlook, the Statement on Monetary Policy, is out next month.
The central bank said markets were resilient throughout the episode, and the direct effect on the Australian economy was likely to be quite small.
The May interest rate cut by the Reserve Bank of Australia (RBA) to 1.75 percent boosted the country’s construction sector in June. This confluence of support includes the key 0.7500 support level, the lower border of a well-defined uptrend channel, and the 38% Fibonacci retracement of the last major low-to-high bullish run.
The RBA minutes also noted that a lower turnover of housing, stricter bank lending standards, and restrictions on mortgage lending to foreign investors were dampening demand for home loans. The minutes revealed from RBA’s July meeting at which they kept interest rates unchanged at 1.75% showed the central bank isn’t really anxious from Brexit as it’s expected to have only a modest adverse effect on global economic activity. New Zealand’s currency was dented after the Reserve Bank proposed ways to curb a house price boom, a move also seen as paving the way for a rate cut.
He thinks that official rates could go even lower because the Australian economy is slowing down.
The result was broadly in line with market expectations, with the typical analyst expecting a 10,000-strong jobs gain and a 5.8 per cent unemployment rate.
Although inflation rate remained below 2% since 2012, house prices skyrocketed by nearly 50% in the past 6 years, which is seen as a major risk to the financial system if prices are due to correct.
“This uncertainty was expected to have only a modest adverse effect on global economic activity”, the RBA said.
In Britain, the focus will be on inflation data for June.
“The RBA forecasts underlying inflation will not reach the lower bound of its 2-3 percent target band until 2018”, Haddad said, thus confirming his expectations of two more cuts in 2016.
“For the record, we continue to look for the RBA to ease by 25 basis points in August and by an additional 25 basis points in May next year”, he wrote in a note.
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The Aussie slipped 0.9% to 75.25 U.S. cents after the release, weakening after a long run of gains.
