The statement started with guarded optimism.....>

RBA: The statement started with guarded optimism re: the health of the global

econ, although it tips its hat to the risks posed by Coronavirus after noting

that risks from the Sino-U.S. trade war remain, although they have de-escalated.

- GDP growth exp. little, if at all, changed, an upside surprise vs. most house

calls, although it does flag bushfires & Coronavirus as temporary headwinds.

- Also noted that "The household sector has been adjusting to a protracted

period of slow wages growth and, last year, to a decline in housing prices, with

the result that consumption has been quite weak. Following this period of

balance-sheet adjustment, consumption growth is expected to pick up gradually."

- No change re: the assessment of labour market, outside recent moves. Progress

towards full employment exp. to remain gradual.

- Bank exp. some fluctuation around 2.0% for inflation over next couple of years

(perhaps an upgrade coming in Friday's SoMP projections). (removes trimmed mean)

- The RBA noted that the AUD is around its lowest levels over recent times.

- Closing paragraph clearly cognisant of close proximity to cash rate's ELB.

There was also a re-focus on the labour market dynamics re: the path for MonPol.