MNI POLICY: RBA Minutes See Next Rate Move More Balanced: Text

--RBA Repeat Still See No Strong Case For Near-Term Rate Adjustment

     SYDNEY (MNI) - The Reserve Bank of Australia saw the direction of the next

move in interest rates as more balanced, with global risks to the the economic

outlook growing.

     Reserve Bank Board members noted there were significant uncertainties

around domestic economic forecasts, with scenarios where an increase in the cash

rate would be appropriate at some point and other scenarios where a decrease in

the cash rate would be appropriate. 

     Moreover, the probabilities around these scenarios were now more evenly

balanced than they had been over the preceding year, when an eventual increase

in the cash rate had appeared more likely.

     Growth in Australia's major trading partners was still seen above trend,

despite moderating in the second half of 2018. and was forecast to be around

trend in 2019 and 2020. However, the downside risks to the global outlook had

increased in the preceding few months.

     Members noted that it was difficult to predict the effectiveness of recent

policy measures in China and how the authorities would balance their objectives

of supporting growth and containing financial risks. 

     Trade tensions and signs of slowing domestic demand had also increased the

risks to the outlook for China. More broadly, trade tensions remained a material

risk to the global growth outlook.

     The full text of the February 5meeting minutes can be found here:

goo.gl/qaf7qn

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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