RBA MADE CASH RATE REMAIN AT 1.50%

Asia conference synopsis

Throughout the Asia-Pacific assembly, the foremost event was the RBA’s July policy decision. As presumed, the RBA kept rates unaltered with the Cash Rate remaining at 1.50%.

In their accompanying narration, the RBA provided little new insight with only minor pinch to their language.

The RBA remembered that steady policy is consistent with growth and inflation targets and that low rates are strengthening the economy.

Besides, inflation is likely to remain downcast for some time, but the RBA seems to expect a gradual pick up.

Ultimately, the RBA expects GDP growth to average slightly above 3% this year and next year.

Finally, the RBA’s July gathering was a non-event with no significant reaction observed in AUD. As such, the developing risk tone remains the main influence on AUD price action.