The slide was on from around 11am AEST before a sharp drop just after 11.30am. Here’s the key observation from the minutes:
The exchange rate had also depreciated noticeably, though it remained at a high level considering the decline in export prices that had taken place over the past year and a half. It was possible that the exchange rate would depreciate further over time as the terms of trade declined, which would help to foster a rebalancing of growth in the economy.
A weaker dollar should help the non-mining sector of the economy as exports become more competitive. But the board noted that business conditions in the non-mining sector remained subdued.
In short, and in line with analysts’ expectations, the RBA sees options for further cuts to interest rates over the coming months if growth remains sluggish.
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