Good to see the Reserve Bank left its official cash rate at 8.25% today. No-one really expected a cut, and it was highly unlikely the bank would follow the US Federal Reserve and slash 75 basis points from its rate.
One of the wonderful things about these announcements is that interest rate watchers and economists try to read between the lines and look for any coded messages in the statements.
It appears to me that the guv (Alan Bollard) is reiterating the hard line message about don't expect cuts soon, however there is a slight mellowing of his views.
Previously he always took the line no cuts. Now he is saying no cuts, but if the world economic situation keeps turning to custard then he may consider a cut.
Good to see the Reserve Bank left its official cash rate at 8.25% today. No-one really expected a cut, and it was highly unlikely the bank would follow the US Federal Reserve and slash 75 basis points from its rate.