The RBA today released minutes from the May meeting. As most of you are aware, the outcome of that meeting was the cut to the official interest rate to 3.75%.
The minutes give good insight into the reasons behind this decision and also provide a potential guide to what will be happening over the next few months. Of key focus by the RBA was the current turbulent nature of the European market. Although the global growth forecasts are starting to look more positive, inflation level in the Australian economy is a continued area of concern for the RBA.
It looks like the RBA has not explicitly flagged the possibility of another round of rates cuts, however they have left suggestion that the cash rate could fall again depending on the Euro market.
Does this mean a further rate cut? We will surely all find out come the first Tuesday of June…