The Australian dollar weakened after the Reserve Bank of Australia (RBA) released its meeting minutes, signaling a dovish outlook on the country’s monetary policy. The minutes revealed that the board is prepared to ease monetary policy further should inflation remain subdued and the labor market deteriorate.

Key Takeaways from the RBA Minutes

• The board discussed the possibility of further interest rate cuts.
• Members expressed concerns about low inflation and wage growth.
• The RBA is closely monitoring developments in the labor market.
• Global economic uncertainty continues to weigh on the outlook.

The central bank has already lowered the cash rate twice this year, bringing it to a record low of 1%. Economists are now anticipating at least one more rate cut before the end of the year.

Market Reaction

The Aussie dollar responded negatively to the news, falling against major currencies. Investors are pricing in a higher probability of further monetary easing, which typically weakens a currency.

Analysts suggest that the RBA’s cautious stance reflects concerns about the global economic slowdown and its potential impact on the Australian economy. The central bank is aiming to support economic growth and boost inflation through lower interest rates.