The RBA Board clearly signals that it is still mulling the possibility of another cash rate cut if demand conditions warrant more stimulus. But this bias is somewhat more muted than earlier in 2013 given the solid AUD slide in recent months (TWI has dropped by 12% since mid-April). Hence, the Board notes low inflation “could still provide some scope for further easing, should that be required to support demand”.
Read the full report: Economic Research
Commonwealth Bank