RBA Board Meeting Rates Statement

"The Board’s current view is that the outlook for inflation allows some scope for further easing of monetary policy, if needed."

The above sentence has been in the RBA statement accompanying the Board Meeting cash rate announcement for the last few months. It's absence in yesterdays statement sends a clear signal that the RBA does not anticipate the need for further easings. This does NOT however mean a tightening is imminent as globally 'conditions remain difficult'. Keep an eye on consumer sentiment and business investment levels.

Full statement: http://www.rba.gov.au/MediaReleases/2009/mr_09_16.html

Yields have consequently priced out any potential of downward movement in rates and have started pricing in the next move being up. There are varying opinions as to when that will be.