RBA Minutes: Cut was down to improving “growth and CPI prospects” - TDS

Research Team at TDS, suggests that the RBA Minutes of the August meeting suggests that the cut was down to improving “growth and CPI prospects”. 

Key Quotes

“RBA forecasts were unchanged from May.  As usual, there was a raft of “uncertainties”.  We note that "exchange rate" was mentioned seven times: 4 claiming ‘past depreciation’ (since 2013) was helping the economy, only 2 were about the ‘recent appreciation’, the other about the exchange rate being buffeted by global developments.  In our view the Board is reasonably comfortable with $US0.75-76 and could give AUD a tailwind.”