But signals that the time for less restrictive stance of monetary policy is approching RBA: Media Release-Statement by Glenn Stevens, Monetary Policy
Saturday's AFR suggested that it is a "given" that rates are going to drop in September. They were saying that the only question is whether it is going to drop by 0.25% or 0.50%. The last few weeks have seen term deposit rates on offer drop back from mid 8s to 8s from the top 5 banks, which is a good indicator of what may be happening behind the scenes. Even if the RBA reduces rates by 0.25% the banks will linger, to continue claiming that they are still taking a hit on funding costs. Cheers, Dan