The RBA’s statement explaining the rate decision retained the language that points to the likelihood of further monetary easing. For one, “…the Board judged that it was appropriate to hold interest rates steady for the time being”. The use of “for the time being” is markedly different from the phrase that was used through much of 2014, which was “a period of stability in interest rate”, and strongly suggests that further rate cuts are the RBA’s base case. Moreover, the RBA decision also states that “Further easing of policy may be appropriate over the period ahead”, and, for good measure the phrase “[the] Board will continue to assess the case for such action at forthcoming meeting” is added, making clear that the option to cut rates will remain an actively discussed topic at subsequent policy meetings.
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