Just continuing to scan through some of the analysis on the Reserve Bank of Australia meeting
Not too much of surprise at all. The following snippets are just quick … err … snippets:
Via
Credit Agricole:
- The only significant changes in the RBA's interest rate decision statement were in reference to local credit conditions. The Board notes that some lenders have increased their variable mortgage rates in response to higher funding costs, but also notes that lenders have also reduced mortgage rates for some new loans. The RBA dropped its reference to the average mortgage rate paid is lower than a year ago in acknowledgement that there has been some out-of-cycle increase in mortgage rates. The RBA expresses a little more concern about credit availability noting that "Credit conditions are tighter than they have been for some time." But the RBA notes that this pertains mainly to investors in residential property as the RBA notes that "Growth in credit extended to owner-occupiers remains robust, but demand by investors has slowed noticeably as the dynamics of the housing market have changed."
CA conclude:
- The RBA statement is a modest weight on the AUD given the Board expresses a little more concern about credit constraints, but the currency will continue to be mainly driven by UST yields as well as headlines on US-China trade tensions. We remain short AUD/USD
