RBA Board meeting minutes to take on an added significance – Deutsche Bank

Research Team at Deutsche Bank, suggests that in the wake of the RBA’s decision to lower the cash rate by 25bps in May, the RBA Board meeting minutes, due Tuesday, take on an added significance in the week ahead.

Key Quotes

“We will be paying close attention to the RBA’s discussion of inflation in particular, as well as the discussion surrounding the policy deliberation. The April labour force figures are due Thursday. We look for a 12.5k gain in employment (with our labour market tracker still pointing to modestly positive trend employment growth, despite some overall softening in labour market conditions) and expect the unemployment rate to tick up to 5.8%.

We look for a 0.6%qoq gain in the wage price index in Q1, due Wednesday. That said, consistent with the widespread softness in price pressures evident in the Q1 CPI we see the risks on wages as likely skewed to the downside. Finally, RBA Assistant Governor Guy Debelle will deliver a speech focusing on FX markets on Wednesday.”