RBA May minutes: doubts over rate cuts

17 May 2016

 

The RBA’s May board meeting minutes have markets less confident of any further rate cuts this year. After the March CPI figures were followed by a 25bps cut, markets quickly factored in another rate move down to 1.50% and were placing a reasonably high probability on another cut down to 1.25%. However, economists pointed to the “Considerations” section and focussed on a sentence which is not always present: “members discussed...

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