RBA saw a case for a November rate cut

Reserve Bank board members acknowledged there was a case to cut the cash rate to a new record low before leaving it unchanged at 0.75 per cent at this month’s board meeting.

Minutes from the RBA’s monthly meeting on November 5 showed board members noted declining retail sales, a weaker outlook for household income, and that inflation and GDP growth had both come in below forecast last year.

However, members agreed that further evidence on spending by households was required before drawing any conclusions about the effectiveness of its three rate cuts since June or government tax rebates.

“Having already delivered a substantial monetary stimulus in recent months, there was a case to wait and assess the effects of this stimulus, especially given the long and variable lags,” read the minutes released on Tuesday.


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