RBA statement – ricardian ambivalence

Is the RBA really neutral?

A funny thing happened yesterday. It was not the RBA dropping their easing bias — which was fairly obvious given

The October RBA Statement had only a few changes from their September statement. Overall, my assessment is that there is

The RBA set the cat amongst the pigeons yesterday, by dropping the ‘scope to ease’ section from their concluding paragraph.

The June RBA Statement was basically a return to the situation prior to the surprise cut in May (with fewer

I hate being wrong, and I was wrong in size today — missing the RBA’s 13th rate cut since 2002.

The April RBA decision was another pause at 3% (last move -25bps to 3% in Dec’12). This was well anticipated