This is a quick reaction piece from FastFT (part of the the Financial Times ... gated):
Three reasons why the RBA did not trim rates
1. Business lending is growing ...
- The accompanying statement says lending to businesses "has been strengthening recently" ... Australian private sector credit growth was at its highest level in six years in February, while business lending grew 5.6 per cent, also at its fastest pace for six years - it had been increasing throughout 2014
2. The RBA's language describing the Aussie economy - that "growth is continuing at a below-trend pace, with overall domestic demand growth quite weak as business capital expenditure falls," was virtually identical to the previous statement.... it also noted that while property lending to investors is stronger than that to owner-occupiers, "neither appears to be picking up further at present" .... the message: the needle hasn't moved in any particular area to prompt a fresh rate cut
And, 3 .... it has the luxury of keeping its options open
-
Agree, disagree? What say ForexLive traders?
