In a nutshell, today’s RBA accompanying statement to the rates decision reveals that since the last Board meeting inDecember, both the global and local growth outlooks have improved and local inflation risks have moved higher. Comparedto RBA commentary six months ago, it is clear that the RBA is not still harbouring serious thoughts that more monetarystimulus may be needed this cycle, especially given the significant depreciation of the AUD since mid-2013. Moreover, thecash rate remains at a record low of 2½%. Our long held view has been that this will ultimately be the low point for thecycle. Today’s RBA commentary bolsters this view.
Read the full report: Economic Research
Commonwealth Bank