The Reserve Bank of Australia monetary policy meeting is today (Tuesday 2 June 2015), with the announcement scheduled for 0430GMT.
- After rate cuts in February and May this year, there are no expectations for any interest rate change today
- Bloomberg, for example, have surveyed 28 economists, none of them is expecting any change
- If you wanna be a contrarian and predict a cut, go right ahead ... But a real contrarian would predict a hike (and be just as wrong :-D).
- The RBA is on hold while they assess the impact of the latest cut.
What is likely is a beefing up the RBA 'easing bias', at the very least it should be made more explicit. You may recall that there was some concern after the last meeting that the RBA had lost its easing bias, as the accompanying statement dropped it. This is an incorrect interpretation, as I explained a month ago ... when the RBA changes rates it doesn't provide forward guidance in the accompanying statement, it uses it to instead explain the cut. So, we'll get the easing bias in today's statement, K?
