RBA will have to ease monetary policy later this year - BBH

Analysts at BBH points out that as widely expected, the Reserve Bank of Australia kept policy unchanged, but many economists still think the RBA will have to ease monetary policy later this year.  

Key Quotes

“The RBA shows little sign of moving in that direction.  Instead, it appears to be putting more hope on fiscal policy.  An infrastructure plan will likely be unveiled in next week's budget.  It may include rail and road projects and a second airport.  The Australian dollar initial extended yesterday's gains but lost momentum around $0.7550.  This area corresponds with the 38.2% retracement of the decline from the March 21 high near $0.7750.  The $0.7600 area is the 50% retracement and the high from late April.”