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RBA minutes - Scope for policy a bit more supportive; No chat of 50 bps cut
FXstreet.com (Barcelona) - After Australia showed impressive
fundamentals in recent weeks, The Reserve Bank of Australia (
), has just released its minutes for the June 5th meeting that saw
a 25bp rate cut to current 3.50%. As a reminder, the report comes
only a month after the Central Bank lowered rates by 50bp.
In the last RBA decision, a 25bp cut had been fully priced in, with some even speculating with some chance of a larger 50bp reduction. Well, there appears to be no signs that a 50bp cut was actually discussed.
As read in the RBA minutes: "With inflation expected to remain in the lower part of the targeting range over the next year or so, members considered that there was scope for monetary policy to be a little more supportive of domestic activity. Members judged that a reduction in the cash rate of 25 basis points, combined with the earlier reductions, would mean that monetary policy would be providing a measure of stimulus that would be expected to flow through to the domestic economy over the coming months."