The minutes of the Reserve Bank of Australia will be published from the monetary policy meeting from two weeks before when the central bank raised interest rates. They will be expected to provide more colour surrounding the Board’s views. The statement on the day indicated new urgency to raise the cash rate from the record low 0.1%, but not as soon as May.
These minutes will be out at the top of the hour and there will be considerable interest in these considering the removal of “patient” from the post-meeting statement.
''In particular, the focus will be on how committed the Board is to waiting for “important additional evidence…on both [our emphasis] inflation and the evolution of labour costs” before it makes a decision to lift the cash rate,'' analysts at ANZ Bank said. ''The stronger the commitment the lower the prospect of a move in May despite the prospect of a very strong Consumer Price Print.''
How might the minutes affect AUD/USD?
AUD/USD is already correcting an hourly bearish impulse, so anything that is less than hawkish could be the catalyst for a downside extension.
About the RBA minutes
The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the AUD.
