In the Australian Financial Review today:

  • The Reserve Bank of Australia's discussion at this month's board meeting about how a cash rate of 3.5 per cent may be the new "normal" was part of a regular monthly "deep dive" into key policy topics and was planned six months ago.
  • Many in markets appear to have over-interpreted the central bank's decision to discuss at this month's board meeting its research into the neutral nominal cash rate. Its inclusion was not intended as a hard signal over the current or near-term stance of monetary policy, but was aimed at informing board members about more longer-term issues.
  • While it was scheduled six months ago, it still provides a pointer to the likely next move as discussions of neutral rates are a hot topic among most other central banks, as well as the Bank for International Settlements.

OK. So it was just a run of the mill communication ****-up from the RBA then. Thanks for clearing that up.

AFR piece is here in full, may be gated: False alarm on new RBA 'normal' rate as jobs surge continues

(The second part of the headline to that piece refers to yesterday's labour market report, which showed 60,000+ full time jobs newly created in June)

Not the RBA