- We are not thinking of what size we might eventually cut rates by
- Will only discuss how big those moves will be when the time comes
- If our rates are steady while others cut, it supports the Australian dollar
- Not discussed possibility of government overruling RBA on policy decisions
- Even if headline inflation returns to 2% figure, it does not mean inflation is under control
- “Sustainably” means inflation coming back down and staying within target band consistently
- We are not encouraging or discouraging anything with the exchange rate
- Focus should be on the trade-weighted index of the aussie, rather than AUD/USD
This article was written by Justin Low at www.forexlive.com. Source