On Friday the RBA also repeated its forecast for below trend growth for the country.
FORBES: INTERVIEW: Cut In Australian Interest Rates May Push Aussies Toward Gold --Economist
Wagers are growing that the RBA will slash yields towards 2.25% within a year.
Over the past 18 months the RBA has raised its key interest rate by 1.75 percentage points.
Meanwhile, the RBA said that NPA would continue to remain its wholly-owned subsidiary.
As prices rise quickly in Australia's booming industries and regions, the RBA can meet its inflation target only if prices elsewhere fall.
"The RBA is not interested in shifting to accommodative monetary policy to 'save' house prices or to restore dwelling construction, " she added.
The RBA minutes were "reasonably balanced, " said HiFx Senior Dealer Dan Bell.
Perhaps we will get to hear why the market got it so wrong when the RBA produces its minutes tomorrow morning early.
In principle the RBA could change its inflation target, ignoring prices in the mining state of Western Australia and perhaps the Northern Territory.
That's why the slowdown in China's real-estate investment should be ringing alarm bells through the corridors of the RBA in Martin Place, Sydney.
WSJ: Heard on the Street: Australia Risks China Hard Landing
But with the RBA cut and with housing prices now starting to soften, Australians may start to look for other safe investments, he said.
FORBES: INTERVIEW: Cut In Australian Interest Rates May Push Aussies Toward Gold --Economist
As China's growth slows and more European countries slip back into recession, the RBA is looking to boost Australia's growth outside the mining industry.
The Reserve Bank of Australia (RBA) said it had "on occasion been the target of cyber attacks", following a report in an Australian newspaper.
Both the RBA and BoJ were out in full force, with the former providing its previous minutes and the latter with further rate decisions.
Australia's deep economic linkages to booming China via its commodity exports mean that the RBA is unlikely to reverse its policy stance in the near future.
The RBA was expected to cut interest rates, but not until later this year, so the timing was what caught most people off guard, market analysts said.
FORBES: INTERVIEW: Cut In Australian Interest Rates May Push Aussies Toward Gold --Economist
The Reserve Bank of Australia (RBA) was among the first rich-world central banks to start raising interest rates after virtually all countries had slashed them during the crisis.
Annette Beacher, head of Asia-Pacific research at TD Securities, said the data wouldn't be enough to swing the RBA into action on Tuesday with an interest rate cut.
Did the RBA jump the gun with its rate cut?
FORBES: Choked By Options, The Euro Eases As It Awaits A Catalyst
Analysts are now suggesting that Aussie policymakers have signaled a pause and that the RBA will remain on the sidelines monitoring the effects of the previously undertaken easing.
Commerzbank analysts said the action of the RBA, along with other central banks, is more of a longer-term support than a short-term support and should be viewed this way.
FORBES: FOCUS: RBA Rate Cut Doesn't Support Gold; Other Factors Influencing
Analysts said that the central bank, the Reserve Bank of Australia (RBA), needed to do more to ensure that its rate cuts were fully passed on the home buyers.
BBC: A for sale sign in front of an apartment block in Australia
Although RBA has a short interest around 20%, they felt it could become a potential short squeeze as RBA could benefit from international growth, economic stimulus funds and a favorable valuation.
The second, while the RBA reiterated that AUD has remained high, it moved its comment on AUD to the last paragraph this month, signaling perhaps a cut is aimed at the currency more than before.
FORBES: Euro Has Upside Here, But Beware The Tricks Of The Season
Europe is the largest investor in Australia, according to the government, which explains why the RBA cites Europe's sovereign-debt crisis as its reason for cutting interest rates this month, while maintaining growth in China remains solid.
WSJ: Heard on the Street: Australia Risks China Hard Landing
Yet, according to Guy Debelle, assistant governor of the RBA, low-doc loans still account for almost 10 percent of new loans and almost half of all new home owners are opting to not make any principal repayments.
FORBES: Still Speculating In Australian Housing: More Punch, Mate!
Aussie government bond prices eased by two basis points a day before the July RBA minutes are published with dealers wondering out loud what the central bank has to say about the role of the international economy on its policies.
FORBES: Treasuries Cool After Early Gains Driven By Europe Stress
But the RBA should look closer.
WSJ: Heard on the Street: Australia Risks China Hard Landing
However, as inflation fears started to subside the RBA left rates on hold for a sixth meeting and in June said that inflation was likely to remain in its desired band and appeared to indicate that its policy adjustment process was over.
应用推荐