- Importantly, further signs of stabilization in China had helped remained over US fiscal cliff.
- Board briefly noted AUD remained at a high level, minutes show no other mention of currency.
- Tentative signs of dwelling investment picking up but non-residential construction lagging.
- Expected effects of cuts starting to be seen, to have further impact over time.
- Following previous cuts, lending rates were now clearly below their medium-term averages.
- Softening labour market, easing wage pressures to help with inflation.
- Inflation outlook afforded some scope to provide additional stimulus to support demand.
- Saw case for cut given peak in resource investment was near, non-mining investment was subdued.
Reaction details (00:33)
- AUD/USD immediately moved lower by 5 pips from 1.0541 to 1.0536, however, this movement has been pared one minute after, trades 1.0543 (-9 pips) last.
- No reaction observed in ASX 200.
Analysis details (00:40)
- RBA cut rates to 3.00% from 3.25%.
- It was RBA's last rate decision until February 2013.
18 Dec 2012 - 00:30 - Fixed Income - Source: Newswires
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