The RBA left the cash rate at 2.50% as widely expected. The accompanying statement was very brief and appears to have removed the easing bias. Earlier mentions that low inflation provides scope for lower rates are absent. There are references that interest rate sensitive parts of the economy are picking up and that more improvement is likely. The RBA appears to have moved to neutral bias at this meeting implying that the next rate move could be up or down. There is no indication of any urgency to move rates again in the near future. Our view is that the cash rate is now on hold at 2.50% through to Q2 2014 when a mild rate hiking cycle is likely to start.