EWA - Australia PMI Data Reinforce Central Bank's Shift To Neutral Policy Stance
Fresh survey data corroborate the changing stance towards a more cautious approach to policy from Australia's central bank, but also highlight the recent impact of regulatory change.
In the Reserve Bank of Australia's February meeting, governor Philip Lowe struck more dovish tone, suggested the likelihood of the next policy move being easing or tightening had become "evenly balanced." The change in policy stance is seen as opening the door for a potential rate cut later in the year if the economic situation deteriorates.
The latest PMI data by IHS Markit and Commonwealth Bank of Australia