VIEW: CBA: Tweaks Point To State Based Nature Of Forward Guidance

CBA note that the previously flagged tweaks at the end of the guidance paragraph “don’t shift the overall message. But they tone down the forward guidance a little bit by removing “2023” from the key paragraph on the outlook for monetary policy that states the conditions for raising the cash rate. We consider this a welcome development as it puts more emphasis on the conditions for raising the cash rate rather than the time at which the RBA expects those conditions to be met. Put another way, it makes it crystal clear that the RBA’s forward guidance on the cash rate is state based and not calendar based (as has sometimes caused some confusion within the commentariat).”