RBA leaves cash rate unchanged at 0.75%. Statement is less dovish than I expected.
Key points from cash rate statement:
1. Expectations of further monetary easing (by number of central banks) have generally been scaled back over the past month and financial market sentiment has improved a little.
2. Other sources of uncertainty include the effects of the drought and the evolution of the housing construction cycle.
3. In both headline and underlying terms, inflation is expected to be close to 2 per cent in 2020 and 2021.
4. The easing of monetary policy since June is supporting employment and income growth in Australia and a return of inflation to the medium-term target range.
