After cutting by 25bp last month, the Board noted that the policy rate is now approaching a neutral level. However, it continued to strike a dovish tone, leaving the door open to further easing ahead, dependent on the incoming data. Since then, CPI inflation figures surprised to the downside, while domestic economic activity rebounded in March. Meanwhile, the external backdrop has improved somewhat – although risks remain – as the global trade war has begun to de-escalate. Against this backdrop, the Board is under little pressure to ease further at this juncture, especially with eyes on the eliminated US rate differential.