Board agreed next move in rates more likely to be up than down

saw no strong case for a near-term change in policy

steady policy allowed RBA to be a source of stability and confidence

sluggish household incomes, high debt and falling home prices "posed downside risks"

had expected Q3 GDP growth to be above 3 pct for the year (vs actual 2.8 pct)

Expected GDP growth to run above potential this year and next

Leading indicators pointed to above average jobs growth for next couple of quarters

Further fall in the unemployment rate likely