RBA announces its latest monetary policy decision - 4 June 2019
- Prior 1.50%
- The decision to cut is to support jobs growth
- Rate cut is to make further inroads into spare capacity
- Says the board is to be paying close attention to labour market
- Rate cut is to assist faster progress in reducing joblessness
- Rate cut is to achieve more progress towards inflation target
- Rate cut is to provide confidence inflation would meet target band
- Consumption outlook affected by protracted low income growth
- Main domestic uncertainty continues to be household consumption
- Conditions remain soft in the housing market
- Downside risks from trade disputes have increased
- AUD at low end of narrow range in recent times
- Sees underlying inflation at 2% in 2020
- Sees underlying inflation at 1.75% this year
That's a record low for Australia's cash rate and it is the first rate change by the central bank since August 2016. It's what markets expected and the RBA hints at more caution with regards to the outlook. However, there is no firm mention of any further rate cuts but the RBA isn't ruling that out either.
It's not a dovish cut and it's also not a firm rate cut into wait-and-see mode but short covering is helping the aussie get a bit of a lift after the decision here. AUD/USD goes up from 0.6978 to highs around 0.6993 currently.
