3 Sep 2013
RBA omits key phrase on Sept's last paragraph
FXstreet.com (Barcelona) - While an early opinion post RBA by NAB indicates that "easing bias is maintained", the market perception on today's statement, so far, is of aggressively buying the AUD on the fact that the RBA has removed its easing narrative from the statement's last paragraph.
Comparison Aug statement vs Sept
August: "The Board has previously noted that the inflation outlook could provide some scope to ease policy further, should that be required to support demand. At today's meeting, and taking account of recent information on prices and activity, the Board judged that a further decline in the cash rate was appropriate. The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the inflation target over time."
September: "At today's meeting, the Board judged that the setting of monetary policy remained appropriate. The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target."
As one can notice, the line "the inflation outlook could provide some scope to ease policy further, should that be required to support demand" has been omitted from the statement this time around, which indicates a slight removal of its dovish tone.
Comparison Aug statement vs Sept
August: "The Board has previously noted that the inflation outlook could provide some scope to ease policy further, should that be required to support demand. At today's meeting, and taking account of recent information on prices and activity, the Board judged that a further decline in the cash rate was appropriate. The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the inflation target over time."
September: "At today's meeting, the Board judged that the setting of monetary policy remained appropriate. The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target."
As one can notice, the line "the inflation outlook could provide some scope to ease policy further, should that be required to support demand" has been omitted from the statement this time around, which indicates a slight removal of its dovish tone.