Some Tweaks To The Post-Meeting Status Give More Cautious Feel

Some tweaks to the RBA’s post-meeting statement have meant that the Aussie bond space has gone bid and the AUD has gone modestly offered in the minutes that have passed since the decision. We note the following points:

• The Board removed the reference to interest rates being at very low levels.
• The Board noted that household spending has been impacted by a combination of inflation and higher interest rates, with the latter being explicitly noted for the first time in the post-meeting statement in the current cycle.
• The guidance paragraph reaffirmed the prior guidance in that “the Board expects to take further steps in the process of normalising monetary conditions in Australia over the months ahead. The size and timing of future interest rate increases will be guided by the incoming data and the Board's assessment of the outlook for inflation and the labour market. The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.”