Australia's central bank eyes unemployment, housing for further rate cuts

SYDNEY - Australia’s central bank will assess global and domestic developments including the state of the country’s labor market before cutting interest rates further, minutes of its September meeting showed, putting the onus on the unemployment rate to improve.

“Members would assess developments in both the international and domestic economies, including labor market conditions, and would ease monetary policy further if needed,” the minutes showed.It left rates at all-time lows of 1% earlier this month, and re-iterated its forward guidance, saying “it was reasonable to expect an extended period of low interest rates in Australia.”

Expectations that rates will remain low for longer and a broader investor move away from riskier assets sent the local dollarTuesday’s minutes showed board members were concerned about the escalating Sino-U.S. trade war, which poses risks to global growth. Additionally, the bank’s own liaison program with retailers showed consumers were still holding back as the boost from government tax rebates had yet to lift sales in a meaningful way.

Since the RBA’s board meeting, surveys of business and consumer sentiment have weakened in a worrying sign.

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