Stevens seen holding at 2% for rest of tenure

Traders are increasingly betting Reserve Bank of Australia chief Glenn Stevens will sit tight on policy for the final six months of his tenure, as a commodities rebound reflects ebbing pessimism in the global economy.

His decade-long stint as RBA governor is coming to an end in September and the swaps market is pricing in just 13 basis points of interest-rate reductions in the coming six months. That compares with 28 basis points as recently as March 9. Although Stevens has acknowledged that benign inflation affords scope to ease again if needed, he hasn't moved the cash rate from an already record low 2 per cent since May last year and has signalled a reluctance to cut again.

Bloomberg