Forex Flash: RBA holds rates and maintains dovish tone - BBH

FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that the RBA kept rates on hold at 3% as expected and held its dovish bias for the most part.

They note that the statement mentioned that the accommodative stance was appropriate and that inflation data could lean itself to further easing. They feel that this is consistent with our view that the most likely timeframe for further rate cuts would be in late Q2 or early Q3. However, the bank also recognized that the downside risks have been reduced and noted that current monetary stimulus is already working. They write, “This led some to see the statement as more hawkish, but not by enough to take the Aussie out of its recent trading range.”