The RBA Board minutes contained little new insights into the RBA’s perception of domestic and global conditions. Thecentral bank’s easing bias remains intact and they are ready to cut the cash rate further “should that be appropriate”. Atthis stage, we do not think that another cash rate cut is appropriate. We still characterise the RBA as “reluctant ratecutters” who would prefer to see any easing in financial conditions to come via a lower currency than through lower interestrates. As well, the low level of interest rates continue to work their way through various parts of the economy.
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Commonwealth Bank