Analysts at TD Securities note that the RBA cut the cash rate by 25bps to 0.75% in line with our expectations.

“Although the RBA inserted ‘a gentle turning point, however, appears to have been reached…”, the RBA tells us that they are prepared to ease monetary policy further if needed, so the Bank retains its contingent easing bias. The motive for cutting today was to support employment and income growth. Looking ahead though, the Board indicates the bias to cut is to ‘support sustainable growth in the economy, full employment and the achievement of the inflation target over time’, which is in contrast to the Sep statement where the Bank highlights just ‘sustainable growth’ and ‘inflation’. Our read is that if we get a poor print on jobs another cut could materialise in Dec, which is a risk to our forecast.”