There were no surprises from the RBA; the bank kept its official cash rate steady, reiterating that it was comfortable with the current policy setting. Surprisingly strong AU data suggests the bank could have done without its June rate cut, which was a line-ball call. In other words, the bank has moved well in front of the curve and is now able to sit pat to assess the impact of recent policy stimulus. The bias for rates is still downwards as Europe remains a key source of adverse shocks but further easing will likely only occur at the end of the year with the soft inflation outlook providing room for action if warranted.