“Life is like a box of chocolates,” said Forrest Gump, who had clearly never looked at the label descriptions on the box. “You never know what you’re gonna get.” And so it was for the RBA on Tuesday when they announced that it was keeping the cash rate steady at 4.1%.
Not the actual decision – we all knew they were not going to cut rates. The market on Tuesday morning rated it about a 10% chance but no one was about to go bet their mortgage on it happening. No, the uncertainty was all about what was in the Reserve Bank’s statement and what they think is about to come next.
