Analysts at Rabobank note that the RBA left rates on hold again at 1.50% today, marking two years since they last did anything; one could say includes any real change in their thinking, not just their Overnight Cash Rate.
Key Quotes
“True, with the Aussie population set to pass 25m at midnight, even as headlines are also filled with stories about killer drought, the RBA can look at the de facto supply-side boost to growth, and to housing demand, and to the downside on wages, and do nothing.”
“And they probably will keep doing so right up until they cut rates again when the meltdown comes home to them. AUD/USD has so far kept within touching distance of 0.74, but let’s see how much longer that’s the case.”
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