The Australian Reserve Bank announced its monetary policy meeting held earlier this month. The message was carried by the present proceedings is that the Bank continues to watch and wait while you find procedures facilitate monetary policy last time impact on the Australian economy. At the same time, did not exclude the members of the Board of the Reserve Bank of Australia to have more convenience and said that the economic growth rate remains below the trend line. The basic conclusion of the minutes of the meeting of the Reserve Bank of Australia today is the fact that the Bank is watching data, such as the Federal Reserve Bank in the United States.
The primary concern for the Reserve Bank of Australia meeting in the month before the month of October is a rising Australian dollar and high levels of consumer confidence and business confidence. These may be opposing forces as a radar for the Reserve Bank of Australia, at least from the perspective of monetary policy, but we do not believe it would be a determining factor in the upcoming monetary policy, assuming that the Australian dollar is very high.
Instead, it will be the biggest factor affecting the cycle of monetary easing Australian is the real estate market and the inflation data might be also in the third quarter of the year is the determining factor if the Reserve Bank of Australia will be closed for further cutting interest rates and more quantitative easing. While Australia's Central Bank has insisted that there is no bubble in prices, but rising prices remained a major threat to the probability of further cutting interest rates. However, such a decision may depend upon what will be done during the third quarter inflation data, to be posted on 23 this month. And if inflation data reading near the upper limit of the target range for inflation of Australian bank at 2-3%, the bank cancelled its direction to a soft monetary policy completely. But the inflation data came as evidence that he is still in the middle of the target range of the Bank of Australia, this makes the door open to further monetary easing, that there was a need to support the demand. As mentioned before, the Australian economy has failed to respond to monetary easing measures which Australian bank before that effectively, the Australian Bank has cut the interest rates again.
There was no reaction from the Australian dollar towards the Australian Bank meeting minutes, but the pair extended its early scoring highest in three months. Later this week, may be the essential event for AUD/USD is the situation in the United States, especially with the approaching expiration of the US debt ceiling, in addition to the GDP for the third quarter.
