FXstreet.com (Barcelona) - The RBA left rates on hold this morning as was generally expected by market forecasters. In analyzing the conclusion of the statement, which was summarizing the decision to leave rates on hold: “The outlook for growth is close to trend; the inflation outlook is right on target; implies policy ought to be set at neutral, but in fact the interest rates are a little below their medium term averages.”
The actual quote from the RBA was listed as contrite: “At today's meeting, the Board judged that, with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remained appropriate.“
According to Robert Henderson, Chief Economist at NAB, “In its entirety, the Statement is very, very neutral with the implication being they are on hold for now. There is still some room for a rate cut ahead, however this will depend on activity indicators weakening materially from here.”
The actual quote from the RBA was listed as contrite: “At today's meeting, the Board judged that, with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remained appropriate.“
According to Robert Henderson, Chief Economist at NAB, “In its entirety, the Statement is very, very neutral with the implication being they are on hold for now. There is still some room for a rate cut ahead, however this will depend on activity indicators weakening materially from here.”
