MNI 5 Things: RBA Meeting Mins (See Main Wire...>

RBA: MNI 5 Things: RBA Meeting Mins (See Main Wire At 00:31 GMT 03/20)

- The RBA didn't make any mention that Q4 GDP would likely be lower than

expected (GDP data was due a day after the board meeting) but tweaked the

wording of GDP outlook.

- The overall tone of the minutes was more optimistic than the month before,

with the RBA noting that overall conditions in the global economy has continued

to improve. The commentary on China was more positive. And significantly the RBA

said "there had been some signs of inflationary pressures building" globally.

- There was very limited discussion on global trade tensions though the RBA

pointed to the risk to Australia if trade protection increased.

- There was likely a lengthy discussion on drivers of non-mining business

investment and the key conclusion was that there some upside risks to the RBA's

forecasts for growth in non-mining business investment over the medium term.

- Overall, there was a tiny upgrade in the outlook for wage growth as the RBA

mainly focused on trends across states. Importantly, the RBA pointed to wage

growth pickup in ind. with high share of employees on individual agreements.