RBA Communication: A clear signal of intent – ANZ

According to the ANZ’s RBA Bias Index which is a tool set for considering the outlook for monetary policy, it is very likely that a change in the cash rate is coming over the coming six months, explains the analysis team at ANZ.

Key Quotes

“It also leads changes in market pricing of the RBA cash rate.”

“The most recent post-meeting statements have taken the Index a little above one. This indicates the RBA’s policy bias is starting to lean in a slightly hawkish direction. We don’t think the signal is yet strong enough to shift our view from ‘on hold,’ but the evolution of the RBA’s language clearly bears watching.”