RBA: Twist in the April meeting minutes - TDS

Research Team at TDS, suggests that there was a twist in the RBA April meeting minutes.

Key Quotes

“Globally, inflation had remained low and very easy monetary policies were continuing to provide support to global demand” and closer to home “Given these [low inflation] conditions, members assessed that it was appropriate for monetary policy to be very accommodative” where “very” wasn’t referred to in the March Minutes. So global interest rates and domestic interest rates are both “very” easy/accommodative, and we think this is an even firmer floor under the 2% cash rate.

PM Turnbull all-but confirmed a double-dissolution election for July 2. The PM said he would ask for parliament to be dissolved after the May 3 Budget, implying that it will contain the Coalition government’s plan for tackling fiscal deficits and government debt. This is crucial given the rising chatter of Australia potentially losing its coveted AAA/stable credit rating.”