RBA: Rates on hold, hardly any change in the statement - TDS

Research Team at TDS, suggests that there was hardly any change in the RBA’s statement accompanying the Bank’s decision to keep rates on hold at 1.5%.

Key Quotes 

“We struggle to find a bias in the statement and at best would argue that the RBA remains in ’wait and see’ mode. It appears that the market was conditioned for this, with today’s ranges smaller than we have historically seen in the meeting following a RBA cut.

Net exports registered a small decline, -0.2%, half way between TD’s f/c at -0.4% and the market at flat. This was more than offset by the pick up in Government spending, which is slated to add +0.6% pts to GDP tomorrow. Overall we expect strong public investment and consumption growth of +4.4%/qtr, adding upside to GDP and we pencil in +1.0%/qtr.”