AUD: RBA minutes likely to repeat willingness to cut but emphasize concern over Sydney house prices

The RBA board minutes are due on Tuesday and they are expected to be dovish, given that the governor recently indicated that the RBA was willing to cut rates further. 

However, house prices remain an important hurdle to further cuts, with the Governor acutely concerned by the Sydney market, where "some of what is happening... is crazy".  

The main interest is whether the RBA says anything about the success, or otherwise, of APRA's macroprudential measures, where investor credit growth appears to have stabilised even as new investor loans remain buoyant and house prices have strengthened. 

RBA Assistant Governor (Economics) Kent is also speaking on Monday on the transmission of monetary policy. Hopefully, he will flesh out the board's view that policy may be less effective nowadays as reduced prospects for future income growth are likely to constrain the borrowing ability of households. 

It is less sure that this is the case, given leverage is reaching a new record high, where total household debt is fast approaching 200% of annual income.