Westpac on the RBA April meeting minutes - 'RBA set out the conditions for a rate cut'

Author: Eamonn Sheridan | Category: Central Banks

WPAC's response to Reserve Bank of Australia meeting minutes, April 2019 meeting.

In summary from a detailed note:
  • The Board has made a clear case for the benefits of lower interest rates, discounting arguments to suggest that it sees little benefit from lowering rates given the very low starting point. 
  • The Board also lays out clearly the conditions for lowering those rates around inflation and the labour market. It appears that it has resolved the uncertainty around the conflicting signals between growth and employment by favouring the labour market. 
  • While prospects for a policy response in May have disappeared, there is still ample time and data releases to justify our timing that there will be cash rate cuts in August and November.
WPAC sticking to August for a first cut. 

Earlier:

AUD traders … tune in tomorrow for the China data - big for the AUD:

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