RBA stands pat with a neutral bias - TDS

Research Team at TDS, notes that the RBA today left the cash rate at a record low 1.75%, as unanimously expected.

Key Quotes

“There was no explicit easing bias left on the table, and the only material change in the statement was a nod to monitoring any impact from the Brexit vote.

Even though activity remains healthy, prices continue to fall across many sectors in the economy.

Aug IBs at 50% for a cut to 1.5% is on the money. ACGB 10yrs just hit a fresh record low of 1.925%, defying numerous investors waiting for a backup in yields to buy again.

The AUD rallied to $US0.755 overnight, sagged on poor data reports, spiked on the neutral bias, and likely to settle around $US0.7500/20 into London trading.”