VIEW: Quick note re: RBA minutes. The Bank is...>

RBA: VIEW: Quick note re: RBA minutes. The Bank is clearly open to further

easing, if needed, to "support sustainable growth in the economy, full

employment and the achievement of the inflation target over time." But it is

worth highlighting that the Bank introduced several potential impediments to

rate cuts: 1) monetary policy is already expansionary 2) tax cuts are in play 3)

mining and housing sectors seemed to have reached turning points 4) the argument

that some monetary stimulus should be kept in reserve to address any future

negative shocks 5) the possibility that policy stimulus might be less effective

than past experience suggests 6) the housing market and other asset prices might

be overly inflated by lower interest rates. The Bank decided that these factors

did not outweigh the case for further easing of monetary policy in October.

- The Bank may be attempting to "front up" any public dissent re: previous

cuts/future cuts & show that it has assessed various key issues along the way.

- Ultimately, the Bank is open to further easing, and likely believes that the

benefits of any such moves outweigh the previously outlined impediments.

Incoming data & global central bank policy will be key.