The RBA cut the cash rate by 0.25bps to 2.75% at the May meeting. The meeting was “live” but the outcome was uncertain with the market pricing the odds at roughly 50/50 of a rate cut prior to the announcement. Most economic commentators thought that the RBA would remain on the sidelines today. And today’s statement would have justified a “no change” decision. The RBA’s views on global growth, domestic growth and the transition to non-mining led growth seem little changed. Instead, the RBA has used the lower-than-expected QI CPI to take the opportunity to speed up the baton pass to the non-mining sector.
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Commonwealth Bank