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No fresh rate cut indicated by RBA

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AAP

2012-12-18

slow domestic economy pushed the Reserve Bank of Australia to cut the cash rate at its last meeting, but there's no indication that there are more cuts on the way.

In the minutes of its December 4 meeting, released on Tuesday, the RBA pointed to weaker performances in some parts of the economy as the main reason for cutting the cash rate by 0.25 per cent to three per cent.

Housing, retail and construction were named as areas of concern, but data relating to employment and wages were also significant.

"At the meeting, the information on labour costs and softening labour market conditions suggested the inflation outlook still afforded the board some scope to provide additional support to demand," the RBA minutes said.

HSBC chief economist Paul Bloxham said the minutes did not illustrate a clear easing bias.

"It appears that it was quite a close call," he said.

"They note that they considered the case for not cutting.

"They seemed to have been pushed over the mark by the softening labour market and the slight softening in wages growth."