The RBA cut the cash rate by 25bps to a record low of 2.25%.
The previous guidance around a ‘period of stability’ in interest rate settings was removed and the Bank now has an implied easing bias.
The RBA now sees output growth below trend for longer than previously assumed and the peak in the unemployment rate a little higher.
Inflation is expected to be at the lower end of the target band via subdued wages growth notwithstanding a lower AUD.
Read the full report: Economic Research