- Global growth downside risks appear to have abated.
- Growth in China stabilized at fairly robust pace.
- Inflation outlook gives scope for further easing.
- Has been sustantial easing from previous decisions.
- Sees public spending constrained.
- Sentiment in financial markets continues to improve.
- Inflation consistent with medium term target.
- Global growth to be a little below target.
- Private consumption spending growing moderately.
- This decision was widely expected due to an improvement in the global outlook, the recent rally in iron ore output and local equities, continued house price gains and the narrowing trade deficit.
- These comments from the RBA are slightly dovish, in particular the comment that Inflation outlook gives scope for further easing.
- Also keep in mind that the RBA's inflation target band is between 2%-3% and the most recent CPI report printed at 2.2% Y/Y.
- In an immediate reaction, AUD/USD moved up 13 pips from 1.0443 to 1.0456, then moved to a low of 1.0418 in the same minute.
- 10 Minutes after the cash rate decision, AUD/USD has moved to 1.0422, trades 1.420 (-16 pips) last.
Print 03:30, 05 Feb 2013 - Asian News - Source: Newswires
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