Reserve Bank of Australia Assistant Governor (Economic) Sarah Hunter spoke at an event in Sydney.
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In summary:
- February statement reflected the RBA board being more cautious than the market about prospects for further easing
- Focused on US policy settings and how they will impact inflation in Australia
- Rebound in household consumption in December quarter not just a temporary pick-up
- Link between RBA’s forecast and board’s policy decision not mechanical
- Always risks and uncertainties around the central forecast
Hunter emphasizing the RBA will be taking a slow approach to rate cuts ahead. Which is what we’ve been thinking. Well, me anyway.
This article was written by Eamonn Sheridan at www.forexlive.com.