RBA comfortable with its ‘on hold’ stance – BTMU

By FXStreet FXStreet (Edinburgh) – Currency Analyst at BTMU Lee Hardman reviewed today’s statement post-RBA meeting.

Key Quotes

“The Australian dollar has remained relatively stable in the Asian trading session after the RBA left its monetary policy stance unchanged”.

“In the accompanying policy statement the RBA acknowledged that there has been “some further softening in conditions in China and ease Asia of late, but stronger US growth”.

“The RBA’s expected timing of the first Fed rate hike is now more ambiguous reflecting recent heightened uncertainty and is seen as likely in the “period ahead” rather than by “later this year”.

“The Australian economy was described as continuing a “moderate expansion”. The language regarding the Australian dollar was unchanged which is seen as “adjusting to the significant decline in key commodity prices”.

“The weakening growth outlook for China and Asia is increasing downside risks to the RBA’s growth and inflation forecasts which may prompt further easing ahead although at the current juncture the RBA is comfortable to keep policy unchanged”.
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Source:: FX Street