RBA Minutes: Shift to neutral stance - TDS

Sandeep Kanihama FXStreet Contributor

According to analysts at TD Securities, today’s release of RBA’s February minutes are a truer representation of the shift in RBA stance to neutral compared to the RBA statement delivered 2 weeks ago.

Key Quotes

“The Minutes indicate the RBA acknowledges the risks posed by falling house prices: “However, members observed that if prices were to fall much further, consumption could be weaker than forecast, which would result in lower GDP growth, higher unemployment and lower inflation than forecast.” That said the RBA remains optimistic noting: “Given that further progress in reducing unemployment and lifting inflation was a reasonable expectation, members agreed that there was not a strong case for a near-term adjustment in monetary policy.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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