RBA Minutes: Prepared to ease monetary policy further – ANZ

According to the analysts at Australia and New Zealand Banking Group (ANZ), the Reserve Bank of Australia (RBA) minutes revealed that the central bank remains open to further easing if needed.

Key Quotes:

“The minutes do not specifically refer to the need for the economy to deteriorate before the RBA will consider another rate cut. They suggest an open approach to lack of progress toward the Bank’s target is still a possible trigger for a move lower.

But we are careful about overplaying this as Governor Lowe has been clear about what economic developments would be needed to get the Bank back to easing.

In his speech on 5 February, the Governor of RBA concluded that − given the cost of low interest rates − things would have to get worse for the RBA to ease again. 

In contrast the minutes from the RBA’s February meeting do not make any reference to higher unemployment or lower inflation being necessary for another rate cut.”