RBA Minutes: No hurry to tighten policy settings

The Reserve Bank of Australia's minutes from its April meeting has been released.

Traders will be looking for them to provide colour on recent economic developments that have surprised to the upside and supported AUD in recent weeks. 

Key notes

• - RBA MINUTES: BOARD REMAINS COMMITTED TO DOING WHAT IT REASONABLY CAN TO SUPPORT AUSTRALIAN ECONOMY
• 19-Apr-2021 19:30:02 - RBA MINUTES: BOARD WOULD MAINTAIN "HIGHLY SUPPORTIVE" MONETARY CONDITIONS UNTIL EMPLOYMENT, INFLATION GOALS WERE ACHIEVED
• 19-Apr-2021 19:30:02 - RBA MINUTES DOES NOT EXPECT TO REACH TARGETS FOR UNEMPLOYMENT, INFLATION UNTIL 2024 AT THE EARLIEST
• 19-Apr-2021 19:30:02 - RBA MINUTES: BOARD WOULD MAINTAIN CASH RATE AT 10 BPS FOR "AS LONG AS NECESSARY"
• 19-Apr-2021 19:30:02 - RBA MINUTES: WILL NOT RAISE CASH RATE UNTIL ACTUAL INFLATION IS SUSTAINABLY IN 2-3% TARGET BAND
• 19-Apr-2021 19:30:02 - RBA MINUTES: BOARD REMAINS COMMITTED TO THREE-YEAR YIELD TARGET OF 10 BPS
• 19-Apr-2021 19:30:02 - RBA MINUTES: BOARD PREPARED TO UNDERTAKE FURTHER BOND PURCHASES, BEYOND A$200 BLN ANNOUNCED, IF IT WOULD ASSIST WITH PROGRESS TOWARDS ITS GOALS
• 19-Apr-2021 19:30:02 - RBA MINUTES: WOULD CONSIDER EXTENDING LOW-COST FUNDING FACILITY FOR BANKS IF THERE WERE MARKED DETERIORATION IN FUNDING AND CREDIT CONDITIONS. NO SUCH SIGNS CURRENTLY.
• 19-Apr-2021 19:30:02 - RBA MINUTES: WAGE, PRICE PRESSURES REMAIN SUBDUED, EXPECTED TO REMAIN SO FOR SEVERAL YEARS
• 19-Apr-2021 19:30:02 - RBA MINUTES: DEMAND FOR NEW BUSINESS LOANS REMAINED SUBDUED
• 19-Apr-2021 19:30:02 - RBA MINUTES: "CAREFULLY" MONITORING TRENDS IN HOUSING BORROWING, MORTGAGE LENDING STANDARDS AS HOUSE PRICES SURGE
• 19-Apr-2021 19:30:02 - RBA MINUTES: MARKET CONDITIONS HAD IMPROVED OVER THE PRIOR MONTH, IN PART OWING TO BANK'S BOND PURCHASES
• 19-Apr-2021 19:30:02 - RBA MINUTES : A$ HAS DEPRECIATED FROM RECENT HIGHS TO BE BACK AROUND LEVELS AT THE TURN OF THE YEAR
• 19-Apr-2021 19:30:02 - RBA MINUTES: PRELIMINARY DATA SUGGESTS MARCH QTR GDP WAS LIKELY TO HAVE RECOVERED FURTHER TO AROUND PRE-PANDEMIC LEVEL, EARLIER THAN PREVIOUSLY EXPECTED
• 19-Apr-2021 19:30:02 - RBA MINUTES: ROLL OUT OF PUBLIC INVESTMENT PROGRAMMES OVER H1 2021 WOULD BE SLOWER THAN FORESHADOWED IN STATE BUDGETS
• 19-Apr-2021 19:30:02 - RBA MINUTES: REDUCED UNCERTAINTY, HIGHER NET WEALTH TO SUPPORT HOUSEHOLD CONSUMPTION RECOVERY
• 19-Apr-2021 19:30:02 - RBA MINUTES: EMPLOYMENT HAD RETURNED TO PRE-PANDEMIC LEVELS "CONSIDERABLY FASTER THAN EXPECTED"
• 19-Apr-2021 19:30:02 - RBA MINUTES: LIKELY FULL EFFECT OF END OF GOVERNMENT'S WAGE SUBSIDY PROGRAMME -'JOBKEEPER' - WOULD BECOME APPARENT OVER SEVERAL MONTHS

More to come...

Description of the minutes

The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision.

The minutes give a full account of the policy discussion, including differences of view.

They also record the votes of the individual members of the Committee.

Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the AUD.