RBA delivers a 25bps cut - TDS

Analysts at TD Securities note that the RBA delivered the much-anticipated -25bp to 1.25%, a fresh record low.

Key Quotes

“1/4 major banks passed on 18bps. Those looking for an easing bias or dovish statement were left disappointed and the AUD initially rallied. The policy statement was constructive, the Bank looking for trend growth at 2¾% and underlying inflation to reach 2% next year (Q1 was 1.4%/q).”

“We stick with our base case of another 25bp adjustment in August for a terminal rate of 1%.”