ANZ ON RBA MINUTES: - First, the RBA is...>

AUSTRALIA: ANZ ON RBA MINUTES: - First, the RBA is of the view that "spending on

public infrastructure projects was supporting a brighter outlook for activity in

the non-mining sector." Some of this impact was direct, with members noting that

some of the public investment "would be undertaken by the private sector..

[leading] to some increase in private sector investment in machinery and

equipment." - Second, the RBA's language around the impact of a higher AUD has

evolved. For some time the RBA has highlighted that a higher AUD could dampen

the outlook for growth and inflation. The Bank has now qualified the required

change in the AUD to be a "material" further rise. We think this evolution

implies a greater degree of comfort with the gain in the AUD to date. - Finally,

we would highlight the RBA's thoughts about the implications of policy changes

by other central banks. The minutes note that "members observed that moves

towards higher interest rates in other economies were a welcome development, but

did not have mechanical implications for the setting of policy in Australia,

where the timing of any changes in interest rates would be dependent, as always,

on developments in domestic economic conditions."