RBA kept the cash rate on hold at 1.75% - TDS

Research Team at TDS, notes that the RBA kept the cash rate on hold at 1.75% as expected, but there was no explicit easing bias in the statement.

Key Quotes

“In fact the last paragraph implies that the current cash rate would be consistent with inflation returning to target over time. We still see a RBA cut in Aug as 50/50, but consistent with no firm bias the back end of the OIS strip has backed up more than the front end.  A full RBA cut to 1.5% is priced in for Feb’17.”