There isn’t much in this that isn’t expected from the RBA. Markets have priced in a ~46 bps move coming into the decision, so this is fitting with expectations. There are no changes to the language and forecasts on inflation but the RBA added a line in the forward guidance to stress on ‘price stability’. They also removed the reference to ‘normalisation’, which may infer that rates are now in neutral territory.

But the language on rate setting is not changed, as expected, with the central bank maintaining that they will need to raise the cash rate further but reaffirming that policy is ‘not on a pre-set path’.

AUD/USD is little changed on the decision, keeping around 0.6805 at the moment.