RBA on hold - looking for the next wave
Although RBA's Governor Lowe has previously signalled to markets that the next interest rate move is likely to be up rather than down he did little to signal that at this meeting.
He predicted that underlying inflation would remain subdued even though the economy itself was picking up. He had growth coming in 'a bit above' 3% in 2018 and 2019. He stated that business conditions were positive and public investment was increasing and more was expected to come from that source too.
A slight hope of higher inflation to come was the CBA's Michael Blythe who stated that a 'modest turnaround' in the recent CPI data appeared to 'be continuing into Q2'.
So, there you have it. Nothing new , RBA on hold for the foreseeable future. However, tuning into anything that is going to move the RBA's hand is going to be the trade. See Justin's posthereon the RBA's predicament as you focus your attention on what is going move the AUD. Plan early, trade confidently and ride the wave for as long as possible...
