Reserve Bank - September minutes
The Reserve Bank of Australia (RBA) chose to keep rates on hold at its meeting earlier this month and the minutes released today make for some interesting reading. The minutes mentioned growth in the housing market on two occasions.
Quote - "Conditions in the housing sector had continued to improve in response to lower interest rates. Information to hand suggested that building activity had increased moderately in the June quarter and building approvals increased in July. Dwelling prices had increased further over recent months, to be 7 per cent above their trough in the middle of the previous year" and conditions in the housing market had continued to improve in response to the current reduced level of lending rates.
We also heard that whilst the forecast is for subdued growth, consumer sentiment is on the improve.
The closing statement leaves the door open for movements in both directions with no bias towards either option.
For more information on what the RBA has to say about other economic indications please view the minutes at: http://www.rba.gov.au/monetary-policy/rba-board-minutes/2013/03092013.html.
The Reserve Bank will meet again on Tuesday the 1st October to reassess it monetary policy.