Did we really expect anything else?
The cash rate is held at 1.50% for a record 22 months. There wasn't much in the statement either to change the outlook for the aussie. The only thing I can see is that they addressed global developments and mentioned that wage growth "may have troughed".
The former acknowledges the fact that Australia may be caught in the crossfire if the US-China trade war blows up or the political risks in Europe spills over to financial markets across the globe, but it doesn't dampen the mood all too much.
The latter meanwhile can be said to be a continued belief that the central bank is optimistic about future wage growth. But is the RBA getting too ahead of itself?
Wage growth remains subdued and Q1's reading was another +2.1% y/y - similar to Q4. That's not entirely suggestive of a rebound from the lows that we saw in Q3 2016 to Q2 2017. The RBA defines "normal" wage growth as +3.5% y/y and we're still a very, very long way from there.
As long as wages stay subdued, inflation pressures aren't likely to pick up either. And that means expect more of the same message by the RBA in the coming months too.
