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No fresh rate cut indicated by RBA

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December 18 2012, 1:06PM

JP Morgan economist Tom Kennedy said the RBA had adopted a neutral tone for its final minutes of 2012.

He said the minutes suggested the inflation outlook, along with weakness in the non-mining sectors of the economy, prompted the December rate cut.

But he said the RBA had given no hint it was planning to cut rates again at its next meeting in February.

"In terms of forward-looking guidance there is nothing in there," he said.

He said the RBA would be looking closely at economic data in 2013 for signs of improvement in the economy.

"Rates are at a level which is approaching that neutral level so if the data picks up you could see rates remain on hold but if it continues to slide, rates could easily go lower."