The response to the RBA meeting yesterday is a 25bp rate cut priced for December 2024

Westpac Financial Markets Strategy team on the Reserve Bank of Australia yesterday. This in brief:

• The RBA meeting was seen as slightly hawkish, a slower return to
  the inflation target, as it remains more persistent and ‘approaches’
  rather than ‘hits’ the target.
• OIS markets, which have completely
  changed their risk profile in the last few weeks, shifted 2-3bp higher
  but have a cut priced for December 2024.
• Further out the curve, bill
  futures moved by 20-25bp from high to low, though only a small
  amount came after the RBA meeting.
• In the RBA press conference, Governor Bullock reiterated the
  board did consider a rate hike for the August meeting as well as the
  result being a hold. She said a rate cut is not on the agenda in the
  near term.

Good stuff.

ICYMI, Justin was all over the RBA yesterday:

• RBA leaves cash rate unchanged at 4.35%, as expected
• RBA governor Bullock: Inflation progress has been slow for a year now
• RBA governor Bullock: A rate cut is not on the agenda in the near-term

This article was written by Eamonn Sheridan at www.forexlive.com.