RBA turns more optimistic

The Reserve Bank of Australia held its key lending rate at 3.0% and noted that the global economy is resuming growth, and "growth in China has been very strong," which is having a significant impact on other economies in the region and on commodity markets.

The Board said the present accommodative setting of monetary policy remains "appropriate for the time being," but its increasingly optimistic tone suggests it may be setting the stage for a rate hike later in the year, in my view.

However, there was nothing explicit in its language that indicated a tightening is imminent.