On May 15, Ben Jamran, chief economist at JP Morgan Australia, said that the minutes of the RBA’s policy meeting to be released tomorrow will continue to emphasize its stance that monetary policy is dependent on data, but at the same time, the minutes will also reiterate that policy effects require It takes a long lag to work, and inflationary pressures are starting to fade.
Jamran added that the May meeting was the first since the release of the RBA review and although it was not mentioned in the statement, some reference to the review is expected to be included in the minutes.
The RBA has also softened in its forward guidance despite a surprise 25 basis point hike this month, and is now likely to keep policy rates on hold for the rest of 2023.