RBA: On hold but risk of further easing remains – RBC CM

As widely expected, the RBA left the cash rate at 1.5% following its March board meeting but the risk of further easing remains in view of analysts at RBC Capital Markets.

Key Quotes

“Not surprisingly, the statement contained an upbeat tone, consistent with recent communication and a central bank content with current policy settings. Our AU economists continue to think that the risk of further easing remains, especially when the housing construction cycle turns, the most recent tightening in lending standards/lift in rates tempers lending, and domestic demand stays tepid.”