The RBA cut its cash rate by 25 basis points, from 2.75% to 2.5%.

These are the points of note in the accompanying statement, the full text is available from here

  • Expects economy to grow below trend in near term
  • Says will adjust policy as needed to foster growth
  • Says unemployment rate has edged higher
  • Sees growth in labour costs moderating
  • Expects inflation within target over next 2 years, even with lower AUD
  • Easing over the past 18 months has supported interest-sensitive spending and asset values
  • Says possible AUD could fall further
  • Says lower AUD would help foster rebalancing of growth

The final paragraph f the statement:

The Board has previously noted that the inflation outlook could provide some scope to ease policy further, should that be required to support demand. At today’s meeting, and taking account of recent information on prices and activity, the Board judged that a further decline in the cash rate was appropriate. The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the inflation target over time.

This is not hawkish, but it is not as dovish as they have been.