RBA minutes: More likely next cash rate move is up rather than down

The Reserve Bank of Australia (RBA) released the minutes of its May monetary policy meeting today, with the key highlights found below.

More likely next cash rate move is up rather than down.

Board agreed there was not a strong case for near-term move in policy.

Given current circumstances, board agreed next move in rates likely to be up, rather than down.

Progress on unemployment and inflation likely to be only gradual.

Inflation to remain low for some time given retail competition, slow wage growth.

March quarter inflation data in-line with bank's expectations.

An appreciation in the A$ would slow expected acceleration in growth, inflation.

Wages expected to pick up gradually as leading indicators pointed to more job gains.

Still uncertainties remain on extent, speed of pick-up in wages and inflation.

Strength in employment has supported household consumption so far.

High household debt poses uncertainty for consumption outlook.

Consumption "relatively resilient" to slower growth in household income over recent years.

Conditions in global economy positive, china debt levels an important risk.