RBA: Market extrapolated the minutes – RBC CM

In view of analysts at RBC Capital Markets, the market extrapolated the RBA's acknowledgement of firmer global prospects and its comment that the neutral rate is 3.5% to a central bank with its finger on the trigger to hike.

Key Quotes

“The board still “assessed that current economic conditions in Australia, and the outlook for growth and inflation, meant that developments in the labour and housing markets continued to warrant careful monitoring” and that there was “significant uncertainty around neutral nominal cash rate estimate.”