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5 May 2016
RBA acted on growth moderating and mixed jobs - RBS
Analysts at RBS noted that the RBA delivered a 25bp rate cut this week but dropped its easing bias at their May meeting.
Key Quotes:
"The decision was motivated primarily by the soft readings on price and wage inflation both in Australia and abroad, even as the Bank acknowledged that growth is continuing in 2016 but at a “more moderate” pace and that employment figures have been “more mixed” of late. Ahead of the full release of the RBA’s Statement on Monetary Policy on Friday, Australia releases monthly retail sales for March along with the latest trade balance."
Key Quotes:
"The decision was motivated primarily by the soft readings on price and wage inflation both in Australia and abroad, even as the Bank acknowledged that growth is continuing in 2016 but at a “more moderate” pace and that employment figures have been “more mixed” of late. Ahead of the full release of the RBA’s Statement on Monetary Policy on Friday, Australia releases monthly retail sales for March along with the latest trade balance."