RBA minutes: May meeting an opportune time to consider reacting to potential risks ...Middle East

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RBA minutes: May meeting an opportune time to consider reacting to potential risks

Reserve Bank of Australia March 31/April 1 meeting minutes

Not yet possible to determine timing of next move in rates

    Not appropriate at this stage for policy to react to potential risks

    May meeting would be opportune time to reconsider, decision was not predetermined

    Possible that global uncertainty over U.S. tariffs could have significant impact

    Global risks to growth had increased, were tilted to the downside

    Board saw risks on upside and downside for Australian economy and inflation

    Important to safeguard progress on inflation and not ease policy "prematurely"

    Labour market still considered tight, labour costs too high and productivity low

    Possibility labour market not as tight as thought, wage growth could continue to slow

    Trimmed mean inflation likely fell below 3% in Q1

    Data pointed to genuine improvement in consumer demand, beyond just sales events

    Board considered run down of RBA government bond holdings, saw no reason to change pace

    Governance board to consider risks in scale and maturity of bond holdings

    This article was written by Eamonn Sheridan at www.forexlive.com.

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