RBA semi-annual testimony brought little new news - TDS

Analysts at TDS suggest that the RBA semi-annual testimony brought little new news and overall upbeat as global growth, commodity prices, labour market and business confidence are all stronger than the Bank expected.

Key Quotes

“Governor expecting a positive feedback loop where these forces eventually boost incomes and spending. Key dovish words were "eventually" and "gradual" i.e. they are in no rush to hike. Plenty of chatter about wages but next to nothing about the exchange rate, only notable comments were repeats, whereby the firmer AUD is (1) a "weak USD" story and (2) surprising given the US is tightening and Australia is not. Headlines repeated the Governors' view that 3.5% wages growth is needed for 2.5% inflation. Last August it was "three-point-something" so actually no change in stance.”