Reserve Bank defies pundits and leaves cash rate unchanged - but makes it clear the focus is on jobs

The Reserve Bank kept its powder dry and left the cash rate on hold this afternoon at 1.5 percent - where it’s been since August 2016.

However, the statement makes it very clear the Board is keeping an eagle eye on the labour force remaining cautiously positive about the low with jobless rate low of 5 percent.

Saxo Capital Markets strategist Eleanor Creagh got it right on AM this morning when she bet the RBA would hold back because of the jobs factor

The message is clear - inflation is one factor but for now the game is all about jobs, meaning every meeting from now on is “live” with a growing likelihood that rates will be cut in July with a followup in August.