Further comments by RBA governor, Philip Lowe
- Confident that lower rates will still stimulate the economy
- Upside risks on inflation are very remote
More dovish stuff from Lowe. Following the Fed's change in stance, I reckon most major central banks will also have to communicate a similar message.
After Lowe's remarks from earlier today, the OIS market has now priced in just over a 70% probability for the RBA to move in July (as seen below) from about 50% to start the day. Meanwhile, the Australian cash rate futures are showing that a 25 bps cut to the cash rate stands at about ~80% probability.
