- Most recent language had given the market the impression that a rate cut would happen in February, with expectations at above 80% that a cut would happen
- The RBA said that European conditions had weakened since last meeting
- They also said that Chinese growth continues to moderate
- Australian inflation is not an issue at this time
- The A$ is higher than they had anticipated
All of the above would seem to be excellent reasoins to start getting interest rates down towards levels which are prevalent around the globe ie <2%, so why didn’t they cut? Sorry, I still don’t know but I suspect that it’s got something to do with ongoing tensions with the major banks who are reluctant to pass on any rate cuts to Australian customers.
