RBA Holds Australian Rates At Expected At Record Low 0.75%

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    The Reserve Bank of Australia held interest rates…



    NDRC – China’s state planner says China confident to achieve full-year economic targets

    The National Development and Reform Commission of the People’s Republic of China (NDRC)

    says approved 8 fixed-asset investment projects in November worth a total of 7.1 bln yuan
    says consumer prices are expected to remain stable in future
    China has the confidence and conditions to achieve full-year economic targets


    Reserve Bank of Australia December meeting minutes

    board agreed important to reassess economic outlook at February meeting
    board felt it would be concerning if outlook for economy, jobs deteriorated
    had ability to add further stimulus if required, ready to ease again if needed
    economy appeared to have reached a gentle turning point
    board noted policy worked with long and variable lags
    extended period of low rates needed to meet employment, inflation targets
    persistently low growth in household incomes a source of concern
    current wage growth not fast enough to reach inflation, consumption goals
    rate cuts had been working by lowering bond yields, a$ and mortgage payments
    board judged stimulus from rate cuts outweighed any negative impact on confidence
    consumers increasingly gloomy on economy, media coverage also more negative
    consumers more upbeat on own finances, which correlates better with consumption
    recovery in home prices expected to be positive for consumption over time
    house prices continued to strengthen, but building to fall for several more quarters
    liaison with retailers pointed to flat sales growth in October and November
    some downside risks to global economy had receded

    Headlines via Reuters


    Australian fund manager AMP says the RBA will cut rates again in February 2020

    Head of Investment Strategy & Chief Economist at AMP Capital Dr. Shane Oliver on the RBA minutes:

    Overall the RBA’s latest minutes are dovish. Feb is live for another easing and we think they will go again.

    Citing points from minutes:

    wage growth not consistent with inflation target
    important to assess the outlook in Feb
    RBA has the ability to provide further stimulus if required
    With no extra stimulus in MYEFO our view remains for another rate cut in February

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