Mkt digests the RBA decision,..........>

AUSSIE BONDS: Mkt digests the RBA decision, initially blipping to fresh lows, YM

now little moved, XM up a touch vs. pre-decision. Bills unch.-5.0 ticks lower.

- The RBA left the cash rate unch. as exp. but has adopted a slightly more

aggressive tone when describing the potential for easing, although it still

notes that such a move will be made when it is deemed "needed to support

sustainable growth in the economy & the achievement of the inflation target over

time." The Bank's '19 GDP forecast will be nudged down to ~2.5% on Friday, going

by the statement, the Bank's CPI exp. for '20 may also be nudged down a touch on

Friday. On the labour market front the Bank stated that "the unemployment rate

is expected to decline over the next couple of years to around 5%," it was

already looking for unemployment of 5.0% in 2019 & 2020. On the trade war front

the Bank noted that "the increased uncertainty generated by the trade &

technology disputes is affecting investment & means that the risks to the global

economy remain tilted to the downside." While it stressed that the main domestic

uncertainty continues to be the outlook for consumption, even as it outlined

some supportive factors. IB's price a ~41% chance of a cut next month.