15 Mar 2016
RBA Minutes today - ANZ
Analysts at ANZ explained that while the RBA left rates on hold at this meeting, some small tweaks to the wording of the policy assessment highlight a slightly stronger easing bias.
Key Quotes:
"Specifically, the RBA noted that “continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand” rather than the previously used “may provide scope”. Perhaps we are reading too much into this, but tweaks in the language, especially in the last paragraph, are likely to be very carefully considered, and could reflect a change in tone.
A piece by Herald Sun journalist, Terry McCrann, reflecting on the impact of last week’s ECB easing on the AUD (and conclusion that the RBA may have to cut the cash rate in order to get the Aussie dollar down to more supportive levels, particularly if the Fed is more upbeat as expected) weighed on AUD/USD. The kiwi was also weaker against the USD"
Key Quotes:
"Specifically, the RBA noted that “continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand” rather than the previously used “may provide scope”. Perhaps we are reading too much into this, but tweaks in the language, especially in the last paragraph, are likely to be very carefully considered, and could reflect a change in tone.
A piece by Herald Sun journalist, Terry McCrann, reflecting on the impact of last week’s ECB easing on the AUD (and conclusion that the RBA may have to cut the cash rate in order to get the Aussie dollar down to more supportive levels, particularly if the Fed is more upbeat as expected) weighed on AUD/USD. The kiwi was also weaker against the USD"