- Before 4.35%
- Inflation continues to moderate, but falls more slowly than expected
- Economic outlook remains uncertain
- Recent data has demonstrated that the process of returning inflation to target is unlikely to be smooth.
- The persistence of services inflation is a major uncertainty
- Growth in household consumption was particularly weak
- A high level of uncertainty also remains regarding the outlook abroad.
- It will still take time before inflation is sustainably within the target range and we will remain vigilant against upside risks.
- Do not exclude or exclude anything from future decisions
- Full declaration
The Aussie fell as the RBA left rates unchanged and then offered language more or less similar to the March statement. The key passage on forward guidance has changed little, except for this one. In March, they said:
“Even though recent data indicates that inflation is slowing, it remains high. The Council expects that it will still be some time before inflation is sustainably within the target range.”
Today, they mention that:
“Recent data indicates that although inflation is slowing, it is doing so more slowly than expected and remains high. The Council expects that it will still be some time before inflation is sustainably in the range target range and will remain vigilant against upside risks.
In short, the RBA has not adopted a very hawkish bias, but it has acknowledged that recent developments in inflation have not progressed as quickly as it had hoped. However, when it comes to forward guidance, it’s the same as the statement says they are “not ruling out anything of interest or ruled out” at this time.
cnbctv18-forexlive
