RBA statement

The key difference in this paragraph, shown below, relative to last month’s statement, is the use of the phrase “further tightening of monetary policy” instead of “further increases in interest rates” in the first sentence.


Market thinks so, mind you, the initial reaction often fades, so, one has to check back in. But watering down the hawkishness is a big fade from the previous comments, and whatever they did or didn’t say at BJ’s.


Some asked what “BJs” meant. It was a reference to the now infamous lunch at Barrenjoey’s, in which the RBA governor was, according to some who attended and leaked the lunch, more hawkish in comments made there, than in official statements. Such views were denied by the RBA.

Today, you got the “P” word used, referencing a pause more explicitly, which is quite dovish.

So it has been quite the wild ride in terms of RBA “forward guidance” through commentary.

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