RBA offers no fireworks with slightly dovish tilt – ANZ

By FXStreet Felicity Emmett, Head of Australian Economics at ANZ, notes that not surprisingly, the RBA left the cash rate unchanged at 2% at its board meeting today.

Key Quotes

“There was little change to the tone of the Bank’s narrative in the post-meeting statement, although some small tweaks to the language suggest to us a slightly more dovish tilt. Overall though the Bank retains its easing bias and is focused on the flow of data on both activity and inflation. As has been the case for some time, it remains ready to cut rates if necessary.

• On the international economy, the RBA remains cognisant of the risks to the outlook, especially for emerging markets and is closely watching the interplay between financial markets and the real economy.

• Those looking for some jawboning on the AUD would have been disappointed, with the wording around the exchange rate only a little changed with the Bank now noting that the exchange rate has “been adjusting” rather than “continued its adjustment”.

• On the domestic economy the Bank once again noted the improvement in activity and the labour market in late 2015, and repeated that inflation would likely remain low. Last week’s fresh record …read more

Source:: FX Street