MNI BRIEF: RBA Minutes Point To April Pause

The Reserve Bank of Australia will consider a pause at its April meeting, according to minutes of its March meeting released on Tuesday.

"Members agreed to reconsider the case for a pause at the following meeting, recognising that pausing would allow additional time to reassess the outlook for the economy. At what point it will be appropriate to pause will be determined by the data and the Board’s assessment of the outlook," the minutes said.

The minutes also noted that monetary policy was in "restrictive territory" and the economic outlook was "uncertain". "These considerations meant that it would be appropriate at some point to hold the cash rate steady, to assess more fully the effect of the interest rate increases to date."

Softer-than-expected growth and inflation data, combined with turmoil in the U.S. and European banking systems, has prompted traders to price out a 25bp hike at the April 4 meeting. The cash rate is expected to remain steady at 3.6% in April. Overnight indexed swaps have priced in almost two 25bp cuts by the end of the year, with a rate of around 3.11% priced in for the December meeting.