RBA kept rates steady and adapted dovish tone - BBH

Research Team at BBH, notes that the RBA kept rates steady at 1.75%, as expected. 

Key Quotes

“The statement was on the dovish side, noting that the appreciating AUD could complicate the economic adjustment.  It noted too that inflation is seen remaining quite low for some time. All eyes are now on the RBA’s inflation report July 27 and then the next policy meeting August 2. 

Before the decision, Australia reported a wider than expected trade surplus and weaker than expected retail sales for May.  The trade gap was –AUD2.2 bln vs. –AUD1.7 bln expected, while retail sales rose 0.2% m/m vs. 0.3% expected.”