RBA board members agreed not to give any clear guidance on future policy direction: May 19, 2015



Intra-Day Market Moving News (AUD/USD)
19 May 2015
  01:35GMT

AUD/USD .... Reuters then reported RBA said it had considered delaying a cut in interest rates earlier this month, but decided the best course was to go ahead given new forecasts for persistently soft growth.

In the minutes of its May 5 policy meeting, the central bank said board members also agreed not to give any clear guidance on future policy direction, following its widely expected quarter point cut in the cash rate to a record low 2%.
Members did not see this as limiting the Board's scope for any action that might be appropriate at future meetings.

Some in the market had been surprised by the lack of an explicit easing bias in the statement, but RBA Deputy governor Philip Lowe this week declared there was still room to cut again if needed.

The minutes revealed that members could see cases for easing in May or waiting until June.
They decided to act immediately given revised staff forecasts showing growth taking longer to strengthen and the jobless rate staying elevated for longer.

On the Australian dollar, board members again agreed that a weaker currency was both likely and necessary, particularly given the significant declines in key commodity prices. The RBA next meets on June 2.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD rises toward 1.0700 after Germany and EU PMI data

EUR/USD rises toward 1.0700 after Germany and EU PMI data

EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.

EUR/USD News

GBP/USD regains 1.2350 ahead of UK PMIs

GBP/USD regains 1.2350 ahead of UK PMIs

GBP/USD is recovering ground above 1.2350 in the European session, as the US Dollar comes under fresh selling pressure on improving risk sentiment. The further upside in the pair could be capped, as traders await the UK PMI reports for fresh trading impetus. 

GBP/USD News

Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets

Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets

Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.

Gold News

PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange

PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange

Pendle is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin price.

Read more

US S&P Global PMIs Preview: Economic expansion set to keep momentum in April

US S&P Global PMIs Preview: Economic expansion set to keep momentum in April

S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.

Read more

Majors

Cryptocurrencies

Signatures