Morgan Stanley on the RBA … June is too soon for a rate cut from the Bank

Author: Eamonn Sheridan | Category: Central Banks

MS commentary on the Reserve Bank of Australia and the employment report yesterday.

April labour market report has been strong enough to prevent the RBA from cutting rates before August
However, the issue remains China … 
  • Mnuchin said he was more cautious about talks with China, saying he has "no plans yet" to go to Beijing and that while he is "hopeful" for a deal, he denied being "confident".
It seems it may require China's labour market or US financial markets to weaken and become a more pressing issue to act as a circuit breaker.

Yep. Keep one eye on the RBA, but keep two on US-China developments.     

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