Statements such as ‘growth to be slower than forecast’, ‘employment growth to slow’ and ‘CPI to be around target for next 12 months’ are strong signals that we can forget about any interest rate rises for the rest of this year, as long as inflation remains under control. The full statement can be read here.
AUD/USD dipped to 1.0676 and may well struggle on the crosses for the next few days as longer-term longs reassess their commitment to the long AUD trade.
