Prior 3.85%
Inflation has continued to moderate
Uncertainty in the world economy remains elevated
There is a little more clarity on the scope and scale of US tariffs
It suggests that more extreme outcomes are likely to be avoided
Domestically, private demand appears to have been recovering gradually
Labour market conditions have eased further in recent months
But various indicators suggest that labour market conditions remain a little tight
There is a risk that consumption growth is a little slower than expected
A further easing of monetary policy was appropriate given decline in underlying inflation back towards the target range band and slightly easing labour market conditions
Will be attentive to the data and the evolving assessment of risks to guide its decisions
Maintaining price stability and full employment is the priority
Full statement

The decision is as per expected as the RBA continues back on the easing path. The thing to note here is that they seem comfortable enough on the inflation front already but are still more or less feeling their way through to getting to the neutral rate. The key now, as pointed out yesterday, is that they will be turning the focus more on labour market conditions next.

And we won’t have to wait too long to get a sense of that with the next key report coming up later this week on Thursday.

AUD/USD is down 0.1% on the day currently at 0.6508 with the low earlier briefly touching 0.6500.