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28 November 2024

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Minutes of the Monetary Policy Meeting of the Reserve Bank Board

Have you ever read the Minutes of the Monetary Policy Meeting of the Reserve Bank Board? From the 7 May 2013 meeting, they are linked here.

This one is especially interesting as it led to an historical reduction in the cash rate to 2.75%. While mining investment is falling and business conditions are below average, there was positive news on housing, responding to previous stimulus from lower rates. The RBA says:

"Dwelling prices were around 4 per cent above their trough in mid 2012, and auction clearance rates had increased. New borrowing for housing had also picked up, while forward-looking indicators and the Bank's business liaison suggested that demand for new housing was improving – notwithstanding a decline in building approvals in the March quarter – with enquiries from prospective purchasers and visits to display homes increasing. New dwelling investment had increased since the middle of the previous year, with members observing that approvals for higher-density dwellings had increased, while approvals for detached dwellings had been flat over this period."

Interesting that the RBA monitors "visits to display homes".

Worth a quick read to see what the RBA watches every month.

http://www.rba.gov.au/monetary-policy/rba-board-minutes/2013/07052013.html


 

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