RBA minutes: Further rise in AUD could lead to slower growth, lower inflation

The RBA minutes from July 4th is out, highlighting that a further rise in AUD could lead to slower growth and lower inflation.

Main headlines

Judged steady policy consistent with growth and inflation targets at Aug meeting

Needed to balance risks from high household debt in a low-inflation environment

Says house prices, household debt warranted "careful monitoring"

Some easing of house prices in Sydney, Melbourne but mortgage credit still outpacing income growth

GDP growth likely picked up in q2, economy seen growing around 3 pct for 2018 and 2019

A$ had risen amid a broad-based decline in the US dollar

Further rise in a$ could lead to slower growth, lower inflation

Mon  pol unch as balancing h'hold debt risk amid low inflation

Aud assumption one source of uncertainty to f'casts 

ABS weights change to lead to lower reported cpi in q4 

Housing mkt conditions, h'hold b/s need careful monitoring 

Overall housing credit growth outpacing h'hold income rise