Flash: RBA as expected – TD Securities

FXstreet.com (London) - Research teams at TD Securities said that as expected by most, the RBA announced an unchanged 2.75% cash rate, just four weeks after the ’surprise’ 7 May -25bp cut. As they also expected, the RBA introduced a fresh explicit easing bias in the communiqué, claiming “ … the stance of monetary policy remained appropriate for the time being.

The Board, as they explained, also judged that the inflation outlook and may provide some scope for further easing, should that be required to support demand”. They explained that all eyes were on the Bank’s view of the AUD correction since the last Board meeting. While it was noted, the Board also said “ … it remains high considering the decline in export prices … ”. They believe the RBA is in a position to sit tight for now.