- It was unanimous. There was no discussion about a large rate cut.
- The neutral rate is between 3.1% and 3.4%.
- RBA’s attention is made on what is happening with inflation rather than a specific neutral rate, what is happening with employment.
- We do not have a point guess where we can finish.
- The board will have to complete and complete things by completing the data.
- If we have an interest rate where it is and we do not cut, we will expect low inflation and high unemployment.
- The forecasts are air -conditioned on a couple and cuts.
- Governor Bullock did not write back-to-back cuts, data will be seen keeping in mind the RBA and assessed in each meeting.
- Our inflation is slowly returning to the target, and the unemployment rate is very low in a historical sense. There is good news here. And till now, it is not suggested that we had very high interest rates.
RBA avoids market shock, indicating a soft inflation approach
Earlier on Tuesday, August 12, RBA cut interest rates after an extended holding period. Forecast of updated employees for August meeting Stated The built-in inflation will continue to fall towards the between 2-3% target.
Expert views on RBA rate path
Shane Oliver, head of the investment strategy in AMP and chief economist, commented on RBA’s interest rate decision, stating:
“RBA forecast – who see slightly lower grighs than in May, 4.3% on the target and unemployment on inflation – next to the sequential rate reduction is 2.9%. Without this, inflation will be less and UNEMP. Therefore, we expect 0.25% deduction in Nov, FEB, & May.”
AUD/USD reacts to Governor Michelle Bullock’s question -answer session
The AUD/USD pair increased to the RBA’s reaction to the interest rate decision, briefly increased to a high level of $ 0.65167 before tumbling below the mark of $ 0.65.
AUD/USD suffered some losses during the RBA press conference, climbed $ 0.64987 from $ 0.64987 to $ 0.65049 to a high level of $ 0.64937 before falling in a session of $ 0.64937. The market reaction reflected the hopes of reducing further policy, widening the US-Australia interest rate difference in favor of the US dollar.
On Tuesday, August 12, AUD/USD was below 0.64999 below 0.19%.