RBA on hold: what changed in statement

The Reserve Bank of Australia left the interest rate unchanged at 1.50% as universally expected. And also the accompanying statement seems somewhat unchanged – only minor changes in the wording without significant clues.

It pointed to medium-term risks for China’s economy: ” This composition of growth and the rapid increase in borrowing mean that the medium-term risks to Chinese growth remain”.

While the statement do mention that a stronger currency could complicate economic transition, the same tone has been there for ages.

It is better illustrated in the following pairwise comparison 7 February 2017 statement vs 7 March 2017: (click to enlarge):