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Following the release of the minutes of the Reserve Bank of Australia’s March 6th monetary policy meeting, the US investment bank – JP Morgan is out with its response on the same, courtesy Bloomberg.

Key Quotes:

“Members had a detailed discussion of the Bank’s operations in repurchase and foreign exchange swap markets and their role in achieving the Board’s target for the cash rate.

What that translates to is the RBA concern on higher rates in money markets, which would tend to diminish the impact of an RBA rate cut.

Whether this implies a great willingness to intervene in these markets remains to be seen.

But it certainly signals a desire to effect full transmission of easings, should they eventuate.”