Article by ForexTime
The Reserve Bank of Australia released minutes of its meeting from November 3 today. In the last meeting the Australian central bank decided to keep interest rates on hold at a record low 2 per cent, despite growing expectations at the time they would trim rates again. The drivers of economists’ dovish views were soft domestic inflation data and commercial banks raising variable mortgage rates, a move that amounts to tighter financial conditions.
The overall tone of the minutes was neutral. There was a dovish line in the text when it comes to inflation, but there was also some reasonable news about the Australian economy’s transition away from the non-mining sector. Since the RBA’s interest rate decision, Australia received a bumper labour report, which showed unemployment falling below 6 per cent for the first time since May.
The Australian dollar climbed as much as 0.1 per cent higher on the release of the minutes, but has since pared gains to be flat at $0.7095.
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