RBA Governor Glenn Stevens has just released his latest post-board meeting statement.
While no-one expected the RBA to move rates from 2% at today’s meeting what’s remarkable is the governor’s statement said nothing. Nothing about Greece or Shanghai – other than that they hadn’t impact long-term borrowing costs for “sovereigns and creditworthy private borrowers” which remain “remain remarkably low”.
That’s remarkably sanguine.
There was nothing in there about the economy, which seems to be slipping away again lately, other than the now customary observation that growth is growing below its long term average and that “in such circumstances, monetary policy needs to be accommodative.”
There was nothing new on house prices although the bank continues to think Sydney property prices are the only hot spot. They note they have that covered with their work with APRA.
There was nothing in the statement for Aussie dollar traders either who were girding their loins to sell again in the expectation the RBA might harden up its easing bias. But there was none of that either. Just the usual “further depreciation seems both likely and necessary.”
So in the end we end up with rates on hold and the RBA watching the data.
But in all that nothing and in the RBA’s apparent calm is one really strong message. That is, the RBA, even below 75 cents still wants the Aussie dollar to fall and rates are staying low in Australia for a very long time.