The major point of focus is on the comment in the minutes that “members agreed that the Bank should neither close off the possibility of reducing rates further, nor signal an imminent intention to reduce rates further”. This indicates that the bank is focusing on incoming data and their bias has shifted from easing to ‘neutral with an easing shading’ (hey, let’s get nuanced!).
The RBA noted:
- Below trend growth (which warranted the 25 bp cut)
- A better housing outlook
- Lower business investment
- That inflation is in target
Summary of main points here.
